What’s Next After This Great Trading Week In The Stock Index Futures?

Well, hey everyone I hope you guys are having a great start to your weekend here.  Boy, deserved rest this weekend huh?  What a great week this was with the trading.  Rest up because we have a lot more of it coming ahead and we’re really looking forward to the trading to be had after this year.  Great stuff.  For all of you that of course joined in the last week or so and took us up on that offer a week and a half ago, obviously what a great introduction to trading with me, huh?  For everyone else let’s go ahead and review what we’re looking for into next week.

I’m going to cut to the chase tonight.  Instead of looking at several different instruments we’re just going to focus on the Stock Index Futures because they are obviously very important to me on an intraday basis and for those of you whether you’re a Swing Trader or Day Trader you’re going to want to know this stuff yourselves.  What I’m looking at going into next week here…

Obviously there is a lot of political turmoil all over the place whether it’s Iraq with ISIS or Gaza and Israel, whether it’s the whole Hamas Israel thing, or Japan/China, Russia/Ukraine, pick your poison, South Korea/North Korea.  There’s something ready to blow up pretty much everywhere.  We consider the Ebola virus situation, if that jumps ship and starts going to other countries lots of bad things can happen in lots of different places.  The Argentinian debt crisis.  Pick your poison there’s lots of things that can go wrong in different places.

Looking At The Stock Index Futures

As we’re looking into next week what I’m looking at is this, we’ve got right now an inventory retracement bar on the NASDAQ, the Russell and the S&P.  The DOW didn’t quite make one there today but that’s irrelevant because three did.  As we’re looking at this we also have key support on the NASDAQ, key support on the S&P and we already started breaking down below on the Dow and Russell.  I’ve been sharing with you these key levels of support in the Stock Index Futures and we keep breaking them.  Then of course that leaves to me doing more shorts and you guys can see the awesome activities that come out of that.  The $VIX spikes, UVXY spikes, the trading spikes, lots of great stuff just kind of happens in such a great trading environment.  We’re going to have a lot more of this as we go into the rest of the year.

As I said this market did go ahead and find some inventory holding us up at some key levels on the S&P and the NASDAQ as you can see today.  But we certainly have lots more room.  Let’s just take a look at this from the weekly chart again on the Russell.  I shared this with you way back before because I pointed out to you, if you recall it’s all in the videos you can go back and take a look at it for those of you that are newer to the videos, but I mentioned for the first time in well over a year and a half now, approximately a year and a half, we’ve gone ahead and actually had a negative divergence here on my indicators.  That was kind of a big deal.  You see we were making higher highs in the indications before but then we finally stalled out here and made the lower low so we were due for a big correction.  We got that correction.  Then we bounced off the key support, we knew that was a real big possibility here with the accumulation bars that were coming in near the support.  We bounced back up, hit that same resistance level we held before and now here we are again testing the same support area.

If we can break this support area this time we can see much lower prices and much more of a down draft making what we’ve seen so far not look as important as we hoped we could see.  Like I said, there is certainly lots of things all over the world blowing up that could go ahead and cause any number of issues here.  We’ve got American terrorists going over to Syria and blowing things up, well he came back to the United States before he left trying to recruit people, what happens if there’s more people like that in the United States?  There’s all sorts of things that could happen there.  Of course I’m planning for that and adjusting to it and trading around that risk.

Going into next week here in the Stock Index Futures, this is the weekly chart.  Like I said, lots of room to the down side if we start breaking down below.  First things first, going to be focusing on if we can break down below these inventory retracement bars?  That’s the key thing.  If we can start breaking down below those… because today volume stepped in there in the institutionals inventory here.  They’re either covering shorts or taking fresh longs off these lows and so what I want to see now is us break down below those which also happens to give me a great place to break down below some key supports right?  We break down these key supports that could lead to some much better trading.  That’s the ideal trade of choice.

If the market opens up going into early next week and starts to retrace a little bit, if we get some good intraday, two minute, five minute, fifteen minute, hourly type of trading signals I might look into some short term longs.  But as you can imagine my heart and soul is going to be into getting the big breaks to the down side.  That’s typically from my perspective where the bigger money is made.  The elevator tends to walk the stairs up and ride the elevator down.  So breaking these inventory retracement bars would be most important.

That’s what I’m looking forward to in the Stock Index Futures going into next week.  Again, let’s celebrate all the successes we had!  The Live Trading Room, the Private Mentorship I did, all the things that happened this week.  Let’s plan ahead real hard together.  We’ll see you Monday morning in the Live Trading Room or we’ll see you Monday evening in the videos here.  Take care everyone, have a great weekend!

Leave a comment!
Read previous post:
Awesome Day Trading From Markets That Keep On Giving

Welcome back to this fantastic Thursday! Boy, this market is the gift that keeps on giving isn’t it? As we...