An Important Strategy Video To End The Trading Week Strong

Let’s take a look at a couple very important things. I have been telling you for weeks that unless we get above the channel on the four indices this means nothing. I told you that in yesterday’s video. We are now trying to cross through the bottom end of the channel on the NASDAQ. We hit the top end of the channel on the S&P. Now it is quickly making its way to the bottom of the channel. The DOW didn’t have two consecutive closed down below it. It also didn’t come back down to the channel to test it and take back off.

This is exactly what I have been telling you about. I have been saying that the initial rally doesn’t mean anything to me until we break above the channel. We sure enough broke down for a deeper correction. We are actually back out of the channels on some of these instruments as well.I was focusing on short side trades this morning. I kept getting fresh sell signals after fresh sell signals. The 1555 area is an important place to take note of on the RUSSELL. It has been a major support area all morning. That ties in with the bottom end of the support on the daily chart. We kept hitting it and bouncing off of it. Now it dipped a few ticks below.

I am going to see if we can take that 1555 level and make it resistance. That could lead to an afternoon selloff. That is the only type of trade that I’m interested heading into this Friday afternoon. If 1555 becomes a major resistance level, I would be interested in shorting the S&P and NASDAQ. I really want to see us start peeling away on what has been support. Let’s get a nice afternoon selloff.

I always say so goes Goldman Sachs, so goes the markets. We are down around 1.3% this morning on Goldman and 2.7% plus on Citi Bank. We don’t really have a mixed market condition. We have the whole market going on in unison. I am only interested in short side or bust. I don’t really want to take fresh longs into falling resistance heading into a Friday afternoon.

If we get above 1555 I am going to be backing off of shorts. This is a nice addition to the other videos that I have made for you showing these key resistance levels. They continue to be resistance. The DOW has even pierced resistance. The other ones are outside or at the bottom of the channels. Everything that I have been saying with that analysis has been dead on.

You guys have a great weekend!

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