Emini Trading Blog

Archive for the ‘Economic Calendar’ Category

A General Rule of Thumb is that a Market will persist in a Trend typically 3 to 5 Rotations.  After 3 to 5 Rotations the Pattern typically changes.  Take a look at the Daily Bar Chart of the E-Mini S&P 500 (Figure 1). From early July 2009 the market has been in an Up Trend continuously making New Highs (NH) and Higher Lows (ALs).  Notice this last New High put in on December 4, 2009.  This New High was put in with “Little Conviction.”  The previous New High was only taken out by just under 7 points.  The Market is working on it’s Sixth (6^th) rotation.  Unless the Market can take out the Highs at 1114.00 plus or minus with some type of “Move with Conviction” we are due for a Larger Retracement to somewhere around the 1025.00 area (Re-test of AL4 and AL3).

Figure 1.  Daily Bar Chart of the E-Mini S&P 500

The 30 Minute Chart of the E-Mini S&P 500 (Figure 2) is in a Sideways Trend and possibility in STAGE 3 of the Market Cycle (see my article posted on Dec 7, 2009 at http://blog.tradingconceptsinc.com/technical-analysis/the-market-cycle/) further indicating that the Market may pullback further than it has the last few days.  In any case, continue to trade the Intra-Day Trends per the Trading Concepts Methodology and be aware of the potential that the Market may be topping out here… and may require a larger pullback or retracement to continue with the current Daily Up Trend.

Figure 2.  30 Minute Chart of the E-Mini S&P 500

Economic Calendar

 No significant Economic News today!

 FYI…

Wednesday, December 16, 2009 at 2:15pm ET is the FOMC (Federal Open Market Committee) Rate Decision.  This is the primary tool the FOMC uses to communicate with investors about monetary policy.  It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes.  Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.  It has a Very High Impact on the Market.  The Market typical becomes very volatile immediately following the announcement and may remain volatile for about 45 to 60 minutes.