TheTradingReport

Updated 1 minute chart of SP500 at 1,121 Level on Dec 23

Written by Afraid To Trade - 12/23/09

Following-up from my prior post “Knock, Knock, Knocking on Fibonacci’s Door,” I wanted to post a quick update on the current intraday S&P 500 Index chart to see just how important this level is and how buyers and sellers are playing ‘chicken’ at this level.

Who will be the first to … crack?

The morning rallied quickly into the critical 1,121 level (official 50% Bear Market Fibonacci Level), formed a slight divergence, and then backed off sharply from the level (ignore the intraday gap in the index).

Price formed a 5-wave fractal move into the 1,116 intraday low on a positive TICK and momentum divergence, then began to rally again to test this upper resistance zone.

Nothing stopped the price from challenging 1,121 again, but this time a “Rounded Reversal” or distribution pattern formed at the level everyone is watching (or should be).

We see negative TICK and Momentum divergence forming at these levels too.

Odds are we back away from the 1,121 level into the close.

I’ll discuss this more, as well as describe and define trade set-ups along with teaching these concepts in today’s Idealized Trades Report for subscribers.

Become a member to learn intraday trading tactics, get access to all archives (see multiple examples of the concepts and trade set-ups), and also learn what biases to expect for the next trading day.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

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Updated 1 minute chart of SP500 at 1,121 Level on Dec 23

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Afraid To Trade

Corey Rosenbloom, CMT is the founder of www.afraidtotrade.com, a website dedicated to helping traders overcome fears through education. He received a dual-baccalaureate degree in Psychology (Cognitive) and Political Science and a Master's Degree in Public Affairs with a concentration in Business. In 2009, he was awarded the Chartered Market Technician (CMT) professional designation.

He began investing using fundamental analysis in 1998 during the run-up to the market top in 2000, and the ensuing bear market opened his awareness to the field of technical analysis as a way to enhance performance and manage risk more effectively. Having also incorporated sector rotation and intermarket analysis into his investment and tradingstrategy, Mr.

Rosenbloom switched to shorter time frame trading tactics to capture additional edge from the price action and trends.

He began writing the AfraidtoTrade.com blog to share some of his experiences and define strategies, which detail his unique style of incorporating both the larger perspective of intermarket analysis with the shorter, intraday trading strategies that can be employed to minimize risk.

In addition to classic price and momentum principles, Corey incorporates basic Elliott Wave and advanced Fibonacci techniques as well as his insights into trading psychology and edge-optimization tactics through daily commentary, education, seminars, and research in the field of technical analysis.

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