Stock, Option and Futures Trading
Over the last week not much has happened other than locking in profits on GLD and GS. We did not want to enter any long trades over the last 3-4 days but it was too soon to enter shorts.
Going into tomorrow we could be setting up to have a reversal day to the downside. The ES 1350 and NQ 2563 are resistance targets so we would be cautious if you are 100% long especially if you entered long late in this current wave.
AAPL closed up +16.50 on the day as the market is hitting resistance. Anytime I see a stock like AAPL that is widely held up that much as the market is hitting support it makes me think we could be at a short term top.
Overall the trend is up and we have been saying that all the way back on the August lows of last year but we have made a move from 2000 to 2550 on the NQ and a pullback to 2400 could be setting up sooner than later.
We have not had our turn pattern to say the top is in so this alert is early in saying we could be at a level to turn down so we are not entering short right here but we would move stops on longs to lock in profits.
Overall the market could chop sideways for days before having a move down OR since we have went straight up the move down could be hard. Either way if we close below the low of today that could be the 1st sign of weakness ahead.
We have much higher targets on the ES, NQ and TF but it would be normal to have a pullback before trying to go up to the higher targets.
If we are very strong tomorrow then we could skip the pullback and extend up another 200 points on the NQ but the odds are lower in that happening.
Again, we have not had our turn pattern so this might be early but the resistance on the highs of today should be noted.
PS. The main symbol I am looking at for the close below the low of today is the ES.