Yesterday I said I would sit on my hands if we closed above the 20 day moving average because that would make me a little more bullish. And, well, we did. So now what? This has been a great traders market with all the volatility we've had for a few months now. All we can do as traders, is trade the market in front of us. We are still in a Bear Market and below the 50 day. Interesting things can happen here. And who knows, we might trade in this area for a few more weeks until it decides a direction it preferer's. That could get boring, but I doubt that happens. If it wants to, we can continue to trade between 3800 and 3600 with some big swings. Need to remember that next week, big tech will announce their earnings. I think next week we'll have bigger moves in the market. So what could happen today? Futures are currently trading 3705. And last night we peaked at 3765ish. Or maybe even a little higher. We could possibly gap down and lets say open at around 3690ish 3680ish, then push our way back up to 3760ish. Vix is back up to 31. Gotta keep watching this. If we close today higher than yesterdays high, we're probably going visit the 50 day. Another outcome could be that we open at 3690, push to 3760ish and close back at 3700. If that happens than the market needs more time to decide. Lets see what happens today. Manage risk, be patient, react and trade the market in front of you.
