Thursday turned out to be a gap with no crap. Unless the market can push to a higher high above 846 tomorrow I think the A leg of an ABC correction pattern will begin. The SP500 % of stocks above the 50 day moving average is now at 78. The market will eventually move higher but it needs to shake off some of the bullishness first.

Tomorrow is looking like it will most likely open higher but I will be looking to fade this rally. Since the SP500 low of 666.79 we have yet to have a significant correction. Obviously a correction is due. If this is part of an ABC correction we still need to have a C leg. This push up can't get past 832 without invalidating it as being a correction. A .618 retrace of the rally from 666 to 832 would land close to 730 on the SP500 which is where the C leg should take us close to. Good luck trading.

I am feeling good now that my taxes are done. Reconciling hundreds of trades is always a pain....but not this year. I found a nice software that can take the nightmare out of making sure all the trades are correctly accounted for and wash sales calculated. It's called Tradelog. I highly recommend it. Now that I finished my taxes I can get back to focusing on the market. Today (Tuesday) ended terribly and the futures are in deep red tonight. Tomorrow will most likely be another down day. Happy trading!!