Market Recap 6-18-2008

Today in the SP-500
Wednesday, June 18,
Today we hit our first downside target 1335, and we also found support their, closing at 1337. Note the price is leading the 2 EMA down and the two EMA is leading the T-Line down on the daily chart. On the 60 minute chart price is still trading below the 13 EMA and the 13 EMA is trading below the 34 EMA keeping us in a downtrend, if this downtrend continues we’re likely to see 1323 and 1315, and then the March lows. We need to see some positive trading tomorrow, the trading needs to be above 1335 and come up through today’s candle at about 1350 test and go through the T-Line. That would give us a positive day. We also want follow-through, where the two EMA crosses up through the T-Line giving us a swing low buy signal.
The safe trader will give the market timing to settle down in the morning to find out its directional attitude. We may be in choppy trading for the next couple of days, sometimes it’s best to sit on the sidelines and observe rather than trade. It is important to not force a trade, and much easier to trade with the market rather than against it.