Testing the Daily Middle Band

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On ES I have two high probability setups looking for a retest of the high, which are the bull flag megaphone that has broken up and the failed ATH, though as ever during the last few weeks, crossing the few handles to that retest is taking a while. On SPX this is a backtesting of the daily middle band, which is holding so far. If SPX should break below it and confirm with another close the next day then the high would likely be in, but until then I’m still looking for that ATH retest. SPX daily chart:

170117 SPX Daily

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Morning Panic

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I had an interesting experience this morning I wanted to share with everyone, particularly since by telling the story, it may save someone a panic in their own trading.

I entered the day, as I always do, short a large number of individual equities. One of them was symbol FTI.

On my portfolio screen (Interactive Brokers), it shows all the stuff you’d expect – – symbol, entry price, quantity of shares, value of the position, and net profit/loss. In the pre-market, the P/L for the day is usually $0, because there’s no trading in most securities, although a few outliers will have information.

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Patterns & Cycles Pointing to SPX 2300 by Month End

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By Mike Paulenoff, MPTrader.com

Since I am a “pattern geek,” what is the Emini S&P 500 pattern whispering to us now? That all of the action off of the new all-time high at 2278.25 established on December 13 — exactly one month ago — is taking the form of a Bullish Coil Formation, which the vast majority of the time represents a digestion period prior to continuation in the direction of the underlying trend (up).

If such a scenario unfolds from the month-long formation, then as long as any weakness is contained above 2248.50, ES should take off to the upside, heading for a target zone of 2300/10. (more…)