Financial Markets Outlook – 01-11-2011 – Market Patterns

I commence with my gratitude to The Ultimate All-Knower

As a prudent trader, we ought to be watching many triggers, patterns, and indicator, and do not forget, price and time cycles, which affect the market we are trading.

See attached chart, which shows that the market, has been trading in a certain pattern, if one does not look at the possible case scenarios, then success as a trader shall be very tasking matter!!!

Caution! Under these circumstance, the prudent strategy is not to hold any long or short potions OVERNIGHT, until the trend is confirmed!! It could be a topping pattern, before the market breaks down or just a consolidation before the market leads higher. It is better to be safe and trade as intra-day than be caught in surprise. S&P must break above 1,278 and stay above to keep the uptrend going and same is true, when it breaks below the 1,270 or 1,262 level, it must stay below that level.!!

Very Important: Something tells me that once we break above the 1,278, we shall have exhaustive move up,. Therefore, it shall be fast and jumpy. Once we hit 1,300 level we shall experience sharp reversal!!