Recent Rally of Futures Trading Causes Short Term Sell Off, November 19th, 2010

As we asked many times before….is this bounce just a correction from the short term sell off we had over the last few days OR was the sell off of the last few days just a correction from the recent rally of last few weeks???

I wish I could tell you, but what I can share is that in situation like this one, it is wise to wait for market reaction, price behavior around key areas of support and resistance and perhaps look at a few time frames, i.e. look at 15 minute chart, an hourly chart and a daily chart…

Below you will see the hourly Mini SP chart and below that the mini SP Daily chart for your review along with key levels.

Mini SP 500 hourly chart:

Mini SP 500 Daily chart:

GOOD TRADING!

Trading Levels

This Week’s Calendar from Econoday.Com
All reports are EST time

Another great source for economic reports around the globe with “report importance indicator” at: http://www.forexfactory.com/calendar.php

Friday, November 19th 2010 – http://mam.econoday.com/byweek.asp?cust=mam

German PPI m/m
2:00 AM ET

Fed Chairman Bernanke Speaks
4:15 AM ET

ECB President Trichet Speaks
9:15 AM ET

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Company, Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!