I’m going to try to build on last week with my trading analysis this week, learn from my mistakes, focus on the chart patterns I know and work to make good decisions this week. The market is now nearly closed, so I’m going to just take a look at the S&P for now, to get an idea of which direction I want to trade this week. Since I want to try to hold on to my available Day Trades, I’m going to look at individual stocks tomorrow throughout the day, and try to get in later in the afternoon.
I’m looking at the equities’ monthly chart, and March has started out strong. Price is up to about 1/2 of the losses February suffered, and that’s also right near a pretty strong resistance area (it’s the monthly chart, so price isn’t as close to the resistance area as it first appears, but it’s nearing that area). Looking at the daily chart, price has been spiking over the last couple of trading days, but that’s off of a push through a key level and downward run that happened during the second half of Feb.
Today’s candle made a decent push up into the resistance area (that was the support that broke mid-Feb.), but ultimately closed down, making an inverted hammer — suggesting weakness. This is either currently making a lower high before making another push further down; or this is making a new high on a power reversal. Either way, weakness is suggested in the immediate future, so I’m going to look ONLY for shorts tomorrow.
