Directional Analysis

In this market update I am focusing on the two main Indices I follow. The S&P500 and the NDX (Nasdaq 100) are usually the first ones to give us a prelude of what direction the market as a whole is heading. I do emphasize in this Video the cautiousness because the markets have not left the ground just yet. What I mean is, if you were to get to an airport and go to the runway and a plain is on the runway, would you automatically assume the plane is taking off?!!!! In this case I see the markets looking like they want to pick up speed to take off, but I still see some smoke from the tires and that is concerning to me!!! I think that the next day or two will give us a more decisive picture of the direction and we could relax after that, until then complacence could cost much hard earn profits.

The unfortunate developments overseas (Japan), have played a bigger factor on the U.S. Markets.  The Fear is one of the emotions that make the markets along with Greed, but fortunately we have technical analysis. This type of analysis keeps us objective and until any major trend breaks we have to stay calm, focus, and be precise on our view the market. I am looking at a few different outcomes of this news driven event, but we have to have something break first. The Uptrends are still in place on the medium to longer term so there shouldn’t be any panic just yet. If anything we could be looking at some opportunities to learn on how uptrends work once they get tested and hold. So far we have had only upside since the open with nice volume, but it is very early in the trading day. We will find out what the market makers are thinking by the close of today. One way or another is how markets are made and we can learn a plethora of knowledge with these current events. I will make another update, either through the video or through the static charts. Stay tone and thank you all for your support.