The short term trend indicators are up but there are some reasons to be cautious of today's move. The volume was lower today than yesterday, even though we moved up much higher. A closer look at an intraday chart of the S&P 500 shows that we could have completed a B wave on the move up today. This might mean that we could drop down in the next day or two and test the support level around 770. I personally feel that a bit more of a pullback would lead to a stronger move up. This is such a critical point. We have perfectly filled in Monday's gap down and this latest rally is at a .618 retracement of the March 26 - March 30 move down. A trading strategy here would be to take a small initial position into a bullish trending stock. Buy one or two contracts and wait for additional confirmation. If it moves higher, you can always add to the position. If it moves lower, you can wait for it to come back up...then add to the position. If it doesn't come back up, then you only lost a small amount of money. I like a couple of bullish patterns on CF, GS, and MFE (can anyone say Conficker Virus).
Thank you for the generosity of your perspective, Jerry. It will hopefully create community. Community can be mutually useful. - William C.
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