Upper Trend line Test coming on beginning of next week

ES Update 1541.75 Key Pivotal Low

$ES_F 1541.75 Pivotal Key Low, if taken needs 1530 to hold...< 1530 bears will want 1481.75...Bulls need a move > 1551.75 to keep momentum

E-mini S&P500 Update with New upside Target

-38.2 new current objective for the spoos after retracing and stabalizing moving half back of current year's range. Inverted Head & Shoulders pattern completes measured move and tags 127.2 extension. -382., 161.8 & upper channel line converging close together. This should terminate the trend and or at least pause it.

E-Mini S&P Futures 1342.25 "date complete" now what?

E-Mini S&P 500 Futures

With the objective of 1342.25 complete Click Here, now the markets can relief bounce. The market was wanting this level to complete for close to a week now and wasn't going to stop the selling pressure until it did so. The big money traders/smart traders have been short and are going to cover into this area as you can see from Friday November 16th, 2012 this was exactly the case. Also Apple squeezed out it's May 18th low of 522.18, which I anticipated that the selling pressure would not subside until it doing so, Click Here With Apple taking May 18th, lows out smart money traders who were short this stock covered on a break of those lows and a squeeze to the upside should be present in the coming days/weeks, in result propping up the Nasdaq and giving a lift to the overall sentiment in the market i.e. SPX and DJIA. At this point in the game the E-Mini S&P 500 Futures should see firm resistance on a releif bounce in the range of 1393.00 -1394.50 and major resistance for the week at 1431.50 Click Here where new (short money capitol) will be put to work. That's the short term expectation over the next week. IF these levels trade in the very near future I anticipate sellers to be present and for the futures to rollover and re-test and break the 1340.00 level. Note: my longer term thoughts on the market is for an ultimate test of the June 2012 lows of 1262.00 and for the E-Mini Futures to not stop selling until this level is squeezed out and we fill the New Years gap at 1252.50. To read my article S&P 500 Multi-Year Correction Expected Click Here.  Note: the reaction seen as the market entered the "Wop" sell window and my expectation of where the market was headed after seeing the rejection Click Here and Here. Also see that the 30 Year bond Diamond post  is making its move as expected and now attacking upside breakout levels.

E-Mini S&P 500 Future have a date with 1342.25

S&P 500 Futures E-Mini Daily

S&P500 Multi Year Correction Expected

S&P 500 Monthly Chart

Looking at the S&P 500 monthly chart here (long term) this index has been in a massive bull rally since the late 1980's. For close to a decade the market pleased investors as the rally resumed to the upside but as a result started to become more volatile due to the birth of electronic trading. The S&P 500 ended up putting in a high in March of 2000 of 1552.87, and corrected/retraced exactly 50% from the March 2000 highs finding lows of 768.63 in October of 2002. This pullback gave investors a chance to reload/enter long on their investments or 401k's to target the March 2000 highs. As this is a longer term chart we are looking at here, we find out 5 years later those March 2000 high targets were completed. As a result of the S&P putting in new all time highs, smart money investors and traders liquidated into the completed objective i.e. a break of the 1552.87 highs. As a result of the objective completing this created an excess, false break high of 1576.09. Known as the 2007 high many of our family members and friends are well aware of the nasty pullback we saw for 2 straight years of selling pressure. Many investors and people with 401k's saw their life savings and retirement diminish in front of their eyes as they were shocked at the continued selling pressure. After all the stimulus money etc. was pumped into the economy, the S&P found support putting in lows during March 2009 of 666.79. At this point the markets began to dead cat bounce as unemployment, though high, was showing some signs of stabilization. Now its October 2012 and markets have been in dead cat bounce mode for 4 years. Though the markets have been rallying for 4 years now its imperative to understand that this rally is one to sell. This is a Sell Mode Bias Rally, meaning the rally will more than likely not continue much further and undoubtedly not take out all time false break highs of 1576.09. Money managers, Institutional Investors (if wise) will understand this and begin to unload long positions or flatten up and sit on the sidelines, though hedge funds will aggressively begin selling short the market as a whole expecting a serious correction to the downside. Well, if they are not in my opinion they should be. My Key Reference Area "Wop" Window of Opportunity to sell the market has been entered. The Wop range is 1437.11 -1474.25. The Current S&P 500 high for October 2012 as I write this is 1474.51 (1) quarter 0.25 cents above my window and we are currently selling printing 1408.42. So the "Wop" did it's job by putting a lid on this rally from the 666.79 lows. As the market enters the "Wop" short trades can be placed with stops above the false break high of 1576.09. Or if you can't short the market long term 401k's should be liquidated into this area i.e. flatten/sit on the sidelines. With the S&P 500 moving into this area and seeing selling pressure active, (entering "Wop" and target hit) this gives us a very scary downside objective of 448.78. All those that say this can't or won't happen, are the ones that typically are trapped in the market buying false break highs like in 2007. Who would have ever thought we would have printed a 666.79 low in March of 2009? Many investors and market experts didn't think we could see those kind of numbers but we did. The month of October is a very important month for the market. A monthly close less than 1422.38 signifies that the trend is apt to reverse and that the bears have regained control of the market. If this occurs we will have a resistance range from 1422.38 -1474.51 and in my opinion will begin attacking the 2012 June low of 1266.74 to start the larger time frame trend-change. My overall expectation, to some, may be far fetched but to me I would not be shocked at all if 2013 will be token-ed the 20th century depression or crash similar to the 1987 crash. I feel obligated as a trader to warn my family and friends what the outcome for the next few years could be. There's a lot of hard working individuals our there that contribute to 401k's and I would hate to see their accounts get cut in half over the next year like so many were in 2007-2009. 

Emini S&P 500 Futures Daily Chart

$ES_F test of 1424.75's coming, anticipating 1428.50's to complete and to squeeze shorts into new highs

Intraday Chart E-Mini S&P 500 Futures

ES Aggresive Buyers into (3) Level of Support Front Run 1 Tick

ES was front run by a tick = Strength

Key Reference Area for Today's Session E-Mini SP500 Futures

Matrix E-Mini S&P500 Futures

Inverted Head and Shoulders Setting Up...Right Shoulder is into Major Support

Daily E-Mini S&P 500 Future

Daily E-Mini S&P500 Futures. It's important to keep an open mind definably with all the negative news/media attention the markets are getting. At times like this is when inexperienced traders are relaxed and not booking profits and and hoping on further prices lower. This is when I start paying attention and begin looking at patterns, market structure, and Key Reference Area's for me to begin scaling into major support areas. Majority of the time if the area you are taking your position at, is not re-tested within the next few sessions, you have trade location at an ideal area. If the Es begins to rally some, and start to take/hit buy stops this will cause a short squeeze type rally that could potentially breakout of the neckline. This is the type of scenario where many traders are looking back days, weeks, and even months from now asking there-selves why didn't "I see this"? It's critical to keep and open mind and trade market generated information is telling us.

Todays Key Reference Area's

ES Reacts into * * * KRA Downside Support

Sometimes its difficult to be patient when looking for new long entries in the market, or spots to cover, or when looking for solid support thats below the aggressive selling pressure which has been happening the last few sessions. But patience and excellent trade location is all you need to find. When you have your area established and are swing long against your ideal trade location and against the rest of the herd (which is very short at the time) you have to let the trade work for you and be patient. Its all about running stops in this business, thats how we get paid. Alot of traders in this business fail because they tend to micro manage posions/overtrade and not let the big picure of OTF work for them. Patience is a viture and is the key ingredient to being successfull in this business.

SP 500 Futures Daily

My Videos For the Week of The Nose Dive Video #1 Video#2

Today E-Mini SP 500 Futures key reference areas

Todays Key Reference Area's E-Mini SP 500 Futures (results)