SP500 and Dow Intraday Charts and Futures Prices at Their Best

By: Chris Vermeulen | Fri, Mar 26, 2010
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The market gapped higher this morning after yesterdays heavy selling. At this time the market (metals and indexes) are trading at resistance on light volume. This tells me people are a little spooked from yesterday and just do not want to buy at these lofty prices.

Stock Market Training Education

I am trying to provide you with more insight and trading tips/education because I know many of you enjoy it. So here is something some of you may find interesting...

Over the years I have found several things which happen repeatedly in the market. I always found it interesting that in an uptrend the market/commodity or stock tends to gap lower at the open the next day. And during a down trend the market tends to gap higher at the open.

Why is this? I don't know for sure... but my thoughts are that the smart money (big guys & professional traders) manipulate the market using futures to artificially lower prices so they can buy more the at lower prices before everyone else jumps in. It's similar but in the reverse during a bear market. Prices gap up so they can short more shares at a higher price before everyone starts selling again pushing prices lower.

I could be way off here as this is my personal opinion but I see it happen all the time... so whether I am right or wrong in my theory the fact is this price action happens.

Take a look at the SP500 & Dow Jones Futures Charts:

S&P500 Index - 10-minute Chart Showing Overnight Futures Manipulation

Dow Jones Industrial Average Futures Showing Low Risk Day Trading Setup

Market Gap Trading Conclusion:

In short, the market gapped up today (not good)...

I see the dollar is now trading at a short term support level and metals are trading at resistance. So maybe something will come out of this for a short play...

I hope this short reports was of use for getting a feel of how the market moves and what I am looking for in low risk setups.

Have a great weekend everyone. I don't see anything tradable other than this intraday low risk setup which just broke down as I write this sentence..... fun stuff

Be sure to get notified about my new day and swing trading service I am launching April 6th by entering your email address in the form at my website: www.TheTechnicalTraders.com

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
- MB Trading
- OEC OpenECry
- The Fox Group
- Dorman Trading
- Vision Financial

He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/