Nice looking coil

The overnight session has formed a nice looking coil, with a {whopping} 7 point range.  I'm looking at it on the 4500 Tick chart, but you can see it on other time frames as well.

The move from this pattern will be the first trade I'll be watching for today.

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It's too early

While price and breadth are acting well, and volume is coming in better than the last few days (not hard to do),it;s way too early to call this anything yet as we are still within the first hour.

In my opinion, and this isn't backed up by any thorough research or anything, just form personal experience and talking with other traders, more money has been lost not waiting for confirmation than any other mistake with the exceptions of not using stop losses

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Gap down

Decent size gap down.

It should be a fade-able gap, but that's what I said yesterday!

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Gap filled so now?

Now we see if the Bulls want to step up and put a decent bounce together. So far, a nice pop off lows, but breadth is still -1100 and the TICK only got to +600.

The Bulls will need to do more constructive work to get this thing going here for more than a dead rat bounce

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Volume on the light side

Volume is traidng light as the market digests the last few sessions

Still tihnk we test the overnight highs, but just got a gorgeous TICK and breadth divergence on the last set of highs

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Now I'm wathcing

For a remount of 117.93, a pause that HOLDS it and then a pattern to form there

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Tagged!

117.93 has been tagged (with a little bleed through so far)

Big question now is if we keep going or is the low into lunch set

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Wil they lose 1200 into the close?

1202.50 Support being tested here

Will they bring us below 1200 into the close?

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We may pull in a bit

I don't think we tank, but we may see a slight pull in into the close as profits are taken ahead of the Job reports

There's no trigger here, it's just an observation, and I could be dead wrong.

OK, so why am I even bothering to say it? Because there's nothing wrong with trailing a stop if long to protect profits.

Support is at 1349 if we did start to pull in

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1318

Holding strong for now basis the S&P futures

'Breadth is still horrible after 90 minutes

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To fade or not to fade

We are looking like we want to fade here and now, but how far we get with the early breadth is the question

First target is 1318 (basis the S&P futures) if we can put something together

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