Per my comments yesterday, we did see the market take the next leg after consolidating for a few days and it was a down leg….and again volume was significantly higher than we had during the bounce.
The trend is obviously down, but bear markets can also have powerful rallies, intraday and on daily chart basis. Separate the daily chart from your minute to minute trading action. Know what time frame you are trading and know your trading goals. If you are a swing trader then look at the daily chart AND hourly chart but don’t let the shorter time frame picture distort your longer term view. On the flip side, if you are a day trader who is using primarily 1 min chart or tick charts etc., understand what the daily and hourly picture looks like but make your trading decisions based on the time frame you are working with.
Daily chart for your review with some FIB extensions on the way down. 1206.75 is now the first MAJOR resistance, 1103 is the first defense before we visit the 1077 lows made August 9th
Daily Futures chart of the Mini S&P 500 from August 18th, 2011
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Economic Reports Friday August 19th, 2011
FOMC Member Dudley Speaks
8:30am USD
Economics Report Source: http://www.forexfactory.com/calendar.php
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