Stock indices are consolidating for the last 3 sessions, trading between 1176 and 1207 on the mini SP 500.
The fact that the consolidation is taking place after a big move down and on lesser volume suggests to me that we are about to see another big move. My guess is that if we break below 1180 on the way down, the next big leg is lower and if we break above 1212 then the next big leg will be towards the 1280 region. Only time will tell if my speculation is correct. In the mean time, know the time frame you are trading, the risk you are willing to take, calculate probabilities and risk / reward and then once you have planned your trade, trade your plan. And yes, I know, it is much easier said than done…..
Daily Mini SP500 chart for your review below with the levels I mentioned above
Daily Futures chart of the Mini S&P 500 from August 17th, 2011
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TRADING LEVELS!
Economic Reports Thursday August 18th, 2011
Core CPI m/m
8:30am USD
Unemployment Claims
8:30am USD
CPI m/m
8:30am USD
FOMC Member Dudley Speaks
8:35am USD
Existing Home Sales
10:00am USD
Philly Fed Manufacturing Index
10:00am USD
CB Leading Index m/m
10:00am USD
Natural Gas Storage
10:30am USD
Economics Report Source: http://www.forexfactory.com/calendar.php
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