by SP Joe

The futures are screaming higher this morning so definitelty mind the gap we are about to have in this market.  I will be sitting out the first couple of minutes to see what the market is going to do.  We will either fill that gap and make it easy to short or we will have a trend day and we might get some longs out of it.  Gap up days are the hardest to deal with because when we gap up so much we don't have much more space to run and it makes it very difficult to get in positions.  Just in case I provided some shorts and some longs to go in the watchlist. 

by SP Joe

The inverted head and shoulders pattern we laid out in last week's Market Analysis played out perfect.  Taking a quick look at the bull and bear case we can see the overhead resistance of the 50 day moving average.  The bears will have a good risk/reward here to put on more shorts.  Looks like the futures are down this morning with not  much coming out of Greek elections and Spain news coming in this morning.  Gap downs are typically a lot easier to trade than a gap up due to the fact we can get a hard reversal and go green during the day.  

by SP Joe

Market volatility is coming in strong as we are seeing moves > 1%.  This is making it hard to swing trade because the moves are not in the same direction.  Big down day two days ago to be erased by a big up day yesterday.  The only concerning factor here is the lack of VIX movement.  VIX shot up strong two days ago but barely moved yesterday suggesting the market isn't buying this rally.