Opening Play and Daily Tradesheet for Tuesday 5/20


Good Morning Traders!

The SPs have rallied to the top of a resistance area. After two days of trading low to high the 2-period ROC is poised to flip down on  a “Sell Short” day.  The DOW has a tight three bar triangle breakout pattern though, as does the SP.

Market indicators are neutral – Sentiment readings still indicate put call ratios at the higher side (no excess speculation) and the VIX continues to stay low as there is a seasonal bias for implied volatilities to remain low through June.   Volume was the lightest in many days.  If the market has a breakout from this three bar triangle formation, we expect an increase in volume. See the chart above:  “All market participants watching the same movie…”!

AD broke down from a three bar triangle on Monday.  Dollar index continues to remain well bid. Sugar has a  pinball Buy.   Bonds and Bunds – three bar coil – can trade in either direction on Tuesday!

Have a great day!



20k snagit jpg


YM 3 bar



Tradesheet from snagit