Waiting for next week....

So far, the pull-back today is orderly coming down into support with the graph of the Diamonds (DIA) shown below. Next week will tell us more about whether this is a trend change or failed retracement.

By the way, what do you think of my system illustrated below?

Happy Trading & God Bless!

Why I'm not buying....Yet!

In the graph of the Dow emini below we see that it has retraced passed the 68% fib mark but is moving up towards the 50% fib mark which will likely be a stiffer test. We also see the trendline drawn and is still significantly higher than the current price. The S&P emini is in a similar situation. Given these high resistance areas yet to come, I would not be a longer term buyer just yet. It is likely that we could see some more retracement up here to the resistance points in the short term. One encouraging note, there is positive divergence on the indicators shown. I will be looking for a break of the resistance areas before feeling like we'll have room for more significant upside.

Breakdown on multiple sectors

We have now gotten a breakdown of multiple sectors. The XLI, XLB, and XLY have all broken support to the downside. The semiconductors have also broken down. Interestingly the XLE, or energy, have held up along with the S&P which has created a dbl-bottom. We'll see what kind of bounce we get and will be watching the volume as well.

Look who's leading down

Below is a chart of the XLE energy ETF. It is now the leading sector moving down after making lofty highs.

Know the Bias

As you can see with the picture below of the S&P emini contract, the volume is leading the way down through support. This would indicate a bias for another lower low. The volume on this last bounce was very weak and was faded intraday over the last couple of days. Watch for a break of the last low.