Rob’s Strategy From Last Week Really Defined Today And The Week Ahead Perfectly

Welcome back everyone.  We are going to keep the analysis portion straight forward.  It is a reflection of everything from this weekend.  Whether you are a day or swing trader, what we are all interested in is the speed lines.  You can see those magenta lines.  We hit some major resistance levels.  We have not confirmed them as support levels however.  We have not pulled down, or shot back up.  That would be very bullish for swing longs.  The problem is that we have not tested those levels.  You would also see that we have been stuck for several days.  The bars that are 45% or more off the high in an uptrend are inventory retracement bars.  You can see that those have stalled the forward momentum. You ended up seeing a quiet session.  That is totally okay because of the elections and other political events.  We will be looking to see if we can break below the speed lines to close the gap. That could create some short term shorts.  I would like to see it pull back to the previous resistance levels, and take back off again.

The hardest thing to do would be to blindly jump back in long.  I will need all four Stock Index Futures to get above the highs from the past couple days.  I need to see some synchronicity here between the four markets.  We didn’t see that today because the RUSSELL was so sluggish.  It didn’t want to break through the distribution bar from the other day.

That put a damper on everything because the NASDAQ was ready to roll.  The S&P would’ve jumped on the wagon if the RUSSELL was.  That is because the RUSSELL is the leader.  We really need to get through the big fat distribution bars.  In order to look for longs, I will need to get above the highs from the past couple days.  To go short, I just need to get below the speed lines.

The VIX is at the very low levels, (the elephant in the room).  We are sitting around the 12 levels.  Historically when we get that low, we get a huge spike up.  If we get that spike there, we will break down below the speed lines.  Look out below!  That is why everything that I have been telling you continues to hold true.  That is why watching all four is so important.

You guys have a wonderful night, keep focused on the speed line continuations, and I will see everyone in the upcoming days.

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