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Is a Friday Reversal day here?

Friday, 23 September 2011 07:01

I believe that swing traders control the short term direction of the markets and therefore those that made their directional bet early in the week will exit that direction towards the end of the week causing the reversal. For example, if the swing trader got short on Monday of this week and watched the market crumble, that trader will look to cover the trade just after the market opens and causing a reversal in the overall market.

Of course not one person, but many swing traders need to do this to make the reversal happen. I have identified 1105 as support on the daily chart of the December Futures S&P 500 contract. It would not surprise me to see that level touched around 10-10:15 and then to see an ensuing rally for the remainder of the morning.

It has been a very good week for my trading and for the education business. The October class is filling up and the September class seems ready to take on the world of professional trading. I am busy and I am fired up. Enjoy your weekend and do the work to make yourself better.