I find the hardest part of trading these days for me has been my inability to grasp what exactly is going on during each trading day because the markets flip/flop almost every other hour. It seems so easy to look at a bunch of information/indicators and formulate a bullish opinion of the markets, but it’s just as easy to look at others and decide the market is going to tank. If you start blog hopping you’ll find just about as many bulls as bears which only adds to the confusion. So what is a trader to do?
Unfortunately I don’t really have the answer and market analysis is as good as useless on the eve of an important economic report like the jobs number tomorrow, so I’m not even going to speculate where I think the market is going to go on Friday. I do know that my personal market timing indicator is still neutral and is likely to pop in a big way very soon with the jobs report being the likely catalyst. Take a look at the chart as I find it rather interesting and I think there is some good tells within this chart.
The purple line is the SPX(symmetrical traingle) and the pink line is the SKF (Financials ultrashort) which is in a falling wedge. Just yesterday it looked as if the markets where going to turn bullish and now it is looking bleak with the SPX clinging on the lower trendline and with the SKF having very distinctive trendlines that look poised to bust to the upside. I’m sure there will be much action pre market that will frustrate many traders, but watch these boundaries to give you some clues to what direction the market may move in next.