ChartsEdge (U.S. equities) map for 8/12

Market Map for Aug12

Posted: August 11th, 2009
Author: Mike Korell
Filed under: One-Day Market Map
Comments to ChartsEdge »


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Thanks once again, Mike and ChartsEdge!

Folks - it's nice when the daily market maps from ChartsEdge work out so well ... We know we are only to use for timing really, and check about mid-morning to see whether it's looking like the price levels are also "working". ChartsEdge has provided explanations for how to use their forecasts, posted at their site pages (links in this post, or at the right side of the page here; also I've posted much of that information at my NB3 "trader education" blog, links at the right side of the page). Still - very handy when it works so closely!

So what are we to make of this one that points to higher for Wednesday? Well first of all, cannot really be surprised after - as I tweeted intraday today - the QQQQ's tested to their 20-day moving average, and the SPX close to 992 was not only on one of our "string" numbers but maybe more important, at the 34-hour MA. So the bounce up on the ChartsEdge market map timing was natural. The weakness after touching our "string" number 997 did not take out the low, and the VIX remained down in the afternoon which was also a clue.

Depending on whether the futures give the opening at above or below fair value, the Fed can be positioned to look like they're helping fix the banks and the whole equities markets; or something different. It's quite common for the morning bias to continue right up into the afternoon announcement, isn't it?! At that point, the action is usually so capricious that it's really impossible to recommend trying to daytrade that unless you enjoy bungee-jumping on the side! Most traders step back and don't do anything until at least 5 minutes have passed in order to play the reaction as either a continuation or reversal of the first few minutes after the announcement. And many traders just step aside for the afternoon, preferring to wait for the better trading day that normally follows the day after.

For swing traders, it isn't a matter of the intraday fireworks, but what levels do - or don't - get triggered. If Wednesday winds up looking like a short-term pullback upward to re-test broken support (and/our our "string" numbers like 997, 1002, maybe 1007 or even 1012), then that will leave continued pullback downward potential for the intermediate term.

So whichever your focus and preferred methods - good luck as you continue to be careful out there ... and happy market navigating!