Kreslik.com - traders community since 2006

Fridays for me are spend going through hundreds of charts and during this research session I try to keep a close eye on the markets and take any trades that might be setting up for next week. Well what a day to be on the other side of the mic! The Nasdaq just got pummeled down over 100 points and the Dow and S&P also put in some negative candles.

Going into this morning I thought there was a good chance to sell the news (Jobs Report) and the market did just that. The markets did sell, and did it in a way that leads me to believe we have some more downside. Here are some important keys to today's action.

1. The $SPX (S&P) traded higher then yesterdays highs which is also a new all time high, then closed lower then yesterdays low making the candle a bearish outside (engulfing pattern)

2. The Engulfing pattern happened when we were overbought on the daily..This is the criteria I use for a true reversal I want to have a overbought or oversold reading when the candle is formed.

3. Volume was higher on this then the previous 3 days.

4. The key takeaway here is the crossover on the daily stochastics and the the large area underneath us that can be tested and still keep this market technically sound.

On a positive note for Monday we got oversold quickly on the 60 min time frame based on the stochastics oscillator and this has been a very reliable signal for a short term move up.

So that's the outlook for early next week, Looking for very short term recovery possibly into Tuesday and then watch how far we get on any bounce and look for that failure that should lead to some further downside.

1800 on the S&P is definitely a possibility down the road.

I put out a early watch list during the day and a more focused watch list of some scalps I will be taking early in the week both . I go back over some key charts in both video's so you might have some duplicate info if time is an issue then watch the second one down on the page.





One last note:

The hardest thing to do is call a top ..even though this look like a great combination of bearish signals this market has proven the bears wrong time and time again when it comes to calling a correction (7%-10%)

DayTraderRockStar

It's time to correct your SPAMMING WAYS!!!!!

Market radar will be a new feature I will be bringing BACK to Day Trading Radio. It will consist of a market call on specific days where I see a convergence of important indicators we follow here at DTR. This alert will be released on a need to know basis. Meaning, if I see a potential for a high probability move up or down or even if we have a very uncertain situation playing out, I will do my best to post the update here. The alert will come in 7 different types outlined below

If you're a follower of Day Trading Radio, you know that I work with a duel stochastic indicator that times the futures with incredible accuracy. I also use a methodology called the HPS or High probability Setups that consist of pattern recognition, Trend lines, Short and longer time frame stochastics. I also take into consideration certain candle sticks combined with volume. All this can be used across different trading vehicles. This signal released will be based on the S&P 500.

LINK TO VIDEO

SPAM, SPAM, SPAM!!!!!!!

Is it really spam?

At least he isn't sending us to buy a kitchen!!

TheRumpledOne wrote:Is it really spam?

At least he isn't sending us to buy a kitchen!!

It's unsolicited advertising from a commercial website - that's spam. He's not an individual trader trying to help others. He's trying to sell something.
Spam is spam - doesn't matter whether it's for kitchens or alleged "trading education".

Well, at least it is about trading.

We are all adults here, we can figure out what we want.

TheRumpledOne wrote:Well, at least it is about trading.

We are all adults here, we can figure out what we want we want

Agree 100% with your comment that "We are all adults here, we can figure out what we want"....... whether it be kitchens, alleged trading education, or anything else from spamming websites.