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Pivotfarm Market T@lk and Data Sheets for February 4th

|Includes: SPDR S&P 500 Trust ETF (SPY), SPY
The lower open on Wednesday was reversed and the ES rallied to the 1099.50 PowerZone before fizzing out. That set up a good shorting opportunity, and it was trend down to the 1091.00-1091.50 PowerZone. A bounce up to 1096.25 failed, and a drop to 1090.50 was then quickly reversed and the market bounced back. The rally took the ES to 1097.25, where it made a double top before pulling back. Then the market went range-bound, with the ES gyrating between 1092 on the bottom and 1097 on top, and finished the day on an up-note.

The market has been very volatile, with a lot of tradable swings in both directions. On Wednesday we had 9 swings of 4+ points... they are listed below:

1093.50 
1099.50 +6.00
1091.25 -8.25
1096.25 +5.00
1090.50 -5.75
1097.25 +6.75
1092.00 -5.25
1096.75 +4.75
1092.50 -4.25
1096.75 +4.25

On Tuesday we had more than that. Just having some patience to wait for the upside or downside to stall/reverse set them up both ways. For now expect the same as long as the 1090.50-1091.00 PowerZone is not broken and held. The futures settled well above fair value, so upside follow-through is factored in if the futures don't drop overnight. If there is early strength on Thursday, it should reverse within the first 40 minutes or else the market is very strong. If the market obliges by reversing any early strength, look for signs of a reversal on a pullback to take a trade on the long side. A pullback should go further than the 1093.50 PowerZone if the upside is going to remain the path of least resistance. 
 


Disclosure: no positions