Here is the new entry update that was published in the Market Dimensions Advisory newsletter for Friday 1/22/16. In this emailed update you see my thoughts going into today’s open as well as a potential short entry. If you would like to receive these updates emailed directly to your inbox please subscribe.
*****We had a price update to this entry. Below you will find the new entry price published in the Market Dimensions Advisory SnapShot and then the original update*****
Published 1/22/16 @ 9:02 am central
The bullish move is still taking place. We have broken out of a new 30 min box formation on our pursuit of 1900.00. We got a new Short Price update as well. Below you will see a setup of the new sell and risk zone. This is a very tight range, so feel free to extend risk further on the trade above a high or look to take a small profit if it presents it, and trail stops…If this short does get hit, then we want to see us attack the 1876.00 level from the previous update. Right now bulls are in control. If long look to target 1905-1910
Updated 30 Min MDA SnapShot Chart
Original update – Published 1/22/16 @ 8:28 am central
We saw a bullish move in the overnight on the coat tails of the oil market. Stocks are +28.75 with a high @ 1892.00. The oil market at the time of this email is +1.95 trading around the $31.50 price levels. As I have often pointed out the correlation between the stock market and oil/gas market is at all time highs. I even heard yesterday that is has been the strongest correlation in a decade with it some place around 95%-98%. So that being said if we see a dip in oil today expect the stock market to follow.
I think the outright sucker play is for traders to wake up and see that market at this bullish move in the overnight and instinctively think to sell the pop. I think we may break 1900 or hit 1910 before we start getting some selling pressure in and could catch some early short entries off guard. I would try and find a buy to start the day, but I do not like buying at the high pre-open or right on the open. I would look for a small retracement first and see what levels bring.
We do have a short setup in play based on the 30 min MDA SnapShot chart. I think it is low enough that if we do start hitting this level it could care some momentum on some of these late soft longs, but we want to keep an eye on oil. If that is not showing any downward pressure we will want to take a small profit if presented to us. If we start selling off in crude at some point today I think the short will do well.
For the bullish move, we are seeing I am looking to our DT Market Action Scanner and seeing we are getting a breakout in the 60-minute chart as well as the 240-minute chart. So there is some stronger technical momentum behind this bullish move at this level. The only thing I would say is that it happened in the overnight and based on oil, so the resistance level at 1900-1910 could hold as bullish resistance.
As of right now we are working the Sell orders show on the 30 min chart. If I see a long opportunity presented sometime today I will update that as well
30 Min SnapShot ES
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