Sunday, March 6, 2011

Friday Was An Inside Day

Please note that this past Friday was an inside day in terms of S&P 500 price action. This means that the daily high was lower than the high on Thursday and that the daily low was higher than the low on Thursday. Inside days in and of themselves do not tell us the future direction of the market. But they portend a thrust or impulsive action out of the price range of Thursday's price action. I have a bullish bias because the market is in an up trend and the trend leading to Thursday's price action was up.

1332 is the line in the sand. If the price action this week crosses 1332, then there should be alot of buy stops triggered. This will further short covering and propel the market to new highs for the year. My personal target short-term would be 1359.

For more information on inside day patterns and the S&P 500 Index, google "inside day" and "larry williams."

Have a good Sunday!

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