Swing High

I love when the market behaves the way I expect it to.

Today being Columbus Day, we saw light volume as anticipated. The three major indexes formed dojis on the daily charts. Seeing a doji at the top of a multi-bar run up like this could indicate a reversal. So far the technicals have remained sound. SPY gapped up today and found major resistance at the highs for 2009 as well as the bottom of our rising wedge formation. SPY almost had a perfect gap fill later in the session which I consider a healthy move to see. In the end, SPY formed a doji after a seven day move up. Technically speaking (as well as fundamentally), we should roll over here and put in a new swing low. However, the markets can do whatever they want, so just make sure that you trade what you see and want what the market wants. There are some big name earnings to watch out for this week (INTC, GOOG, GE, JNJ, JPM, C, GS, BAC, just to name a few…). Be careful trading into earnings.

Thank you for being part of swing-high.com!

Happy Trading,
Jason

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