Day trading course Consolidation after a move up on the New Year rally.  

The S&P500 emini futures is in a consolidated range on after a positive week.  The S&P and the NASDAQ are lagging below their respective October highs. If the S&P and NASDAQ can set new highs, confirming the Dow’s strength. If they don’t they may ultimately end up proving that the Dow’s buyers weren’t committed and the market will drop.

The Dollar index has moved down off the highs.  There is a decoupling occuring with the Euro – Dollar index and the S&P500.  Normally the Dollar index and the S&P500 emini have an inverse relationship.  The Dollar index goes up and the equities market normally moves down.  There is also a relationship that exists between the Euro and the Dollar.  Normally when the euro goes up the equities market goes up.  The opposite was also the norm, when the Euro went down, the equities market went down.  This Past week we have experienced a rally in US equities and a fall of the Euro.  This means they have decoupled.

On point 1 euro goes down, dollar index goes up, S&P500 down

On point 2 same

On point 3 Euro down, dollar index up, S&P500 no direction.

This period of consolidation, (no direction) is showing the decoupling from the effects of the euro devaluing.  Instead of following it down, the market has supported the price and buyers have kept it from selling off.

You might also note that the major trend between the Euro and the S&P500 also decoupled in the long term from around Dec. 1 as the S&P500 started an uptrend with higher lows giving us higher highs and the Euro giving us lower highs and lower lows the sign of a bearish market.

Day trading course looks at price and direction, the support and resistance and the direction of the market.

The S&P500 has consolidated above the previous gap in a 10 to 14 point range.  1270.50 is the point of control if we can break above 1282.75 we could see the push to 1300.  We have enough news coming out this week.  There could be a lot of profit in it for equities.

Next target once we break 1302 is 1314.75 then 1326.50.

We shall see.  On the sellers side we have support at 1270.50 and 1262.75 then 1246.50.

The push up is coming with the Euro taking a break to consolidate from 1.27-1.28 Watch for a break of these levels.

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The S&P500 emini futures is one of the largest professionally day traded markets in the world. Our Day trading course focuses on training you on how to see price and direction in the marketplace and how to leverage your strengths to take a profit out of the market.

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