Day Trading Course|866.640.3737|learn how to day trade stocks and futures.

We will be training in Montreal in two weekends from now and would love you to join our community.  We offer support in English, French and Japanese.  Let’s take a look at the S&P500 emini futures for an indication of where price might go.

Day traders have sold the S&P500 to support.

Sellers have moved this market down to 1119.50 creating a temporary support on this bearish move down.  We have a price failure to the resistance at 1128.50 with sellers following through with more pressure to support again.

Point of control, where the buyers could take the direction for the day is above 1128.50  area.  Watch for a re test of this area in the opening hours if the support holds to the regular market open.

Remember traders, if you do not see a signal, don’t trade remember your foundation from the day trading course.

A lot of traders have increased their exposure at these levels while the smart money has decreased trade size and will add on once they have direction.  There will be a lot of victims off this next move in either direction.

Bearish action could push through to new swing lows.  Our first resistance to the downward pressure or sell is around 1110 which is a previous swing low.   There is more of a psychological support at the 1100 range where investors will be screaming “oh no!” I wish I would have sold earlier and then dump into a sell off.  Good for those of us with the accounts and the ability to short in to this.

Once we break the support at 1090 area we have a supporting trend line on a bearish trend.

The previous extreme low is 1072-4 area.  If we break this with some commitment all bets are off.  Our Day trading course participants are waiting with baited breath for this approach.  Here is where the gloves come off and the Market Makers can make a point to the Fed that the extra trillion dollars for QE3 is necessary.  A test on the 1000 level would push the market to say, ” hold on!”

Greece has been on the burner for over 6 weeks with back and forth and no real action except default.  When this happens there could be a run on Cash which would implode across Europe as cash machines are emptied and Banks try to calm the panic of the Contagion of with drawls.  No bank can prepare all the cash for the account holders and will kick off a chain around the world of people starting to hold Cash.

This is the worst case scenario as we run into a confluence of Market Failure.  We have a Greek Default, A housing bubble in Spain and uncontrolled lending on property that has no standardized appraisal system in Spain, Portugal, England, Ireland, Italy and France.  This coupled with crashing commodity prices, a slow down in China and another housing bubble, combine to move the markets in an every increasing volatility.  If you are a break out trader be warned, your accounts are at risk.