Replies to post #5132 on ajtj99's Market Pulse

[market_watcher]

We've got a ton of room to the downside on the hourly indicators. We've had strong closes the last few days, but with today's strong open, that could reverse. I'd like to see us close strong, but only so I can buy puts cheaper for a retest of the breakout from that inverse head and shoulders.

Additionally, Onishka had a top today, but it could be anywhere from 1280-1302. If it is a top today, the higher the better. I don't want to buy options right in the middle of a move, if this is the middle.

[Trade Hard]

The most logical outcome is the following as I don`t see how a strong move to the upside could be made after today`s strong opening:

1) A sideways move over the top of the downtrend channel within the boundaries of that small uptrending channel. While time passes by (consolidation in time) room to the upside may be delivered.

2) A drop towards the breakout point of the inverse H&S around 1266.

While I`m writing this, descending triangles are forming on the NDX, COMP, SPX and DJIA. Their base is respectively 1278, 1730, 994, 9234. Watch those levels for a decisive downside break.