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Market Recap: 1261 Held once Again

August 26, 2008 5:13 PM

grasshopper.jpgSometimes I make this far more complicated than it needs to be. What did I say before the open? The trade is long unless we clear 1261 and cannot immediately reverse. Period. Today’s low? 1263. Once again the KISS principle should have come into play. KEEP IT SIMPLE.

I was long early on once I saw 1263.25 hold on the futures but was surprised when it backed off 1275.75 and never challenged it again. It did, to some extent as it ran back to 1272 and reversed. Then I knew 1272 was an issue to the upside. It ran up to 1271.75 and I warned it HAD to clear 1272 to be long up there. It ran all the way down to a new low off that number.

Tomorrow we have Durable Orders before the bell. It will be same story different day. 1261 (cash market) HAS to hold OR immediately reverse if cleared or we will be heading for a retest of 1200, which I have long felt is coming anyhow. Theoretically (my theory anyhow) 1200 is NOT the low on the SP. I will stick to that view until proven correct, which I believe I will be, eventually.

I need the Grasshopper for this post as I obviously need to learn from my own comments.

Written by Tom@StockBlade.com · Filed Under Pre-Open 

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