Fakeout Sell Signal

Bernanke is still holding his news conference but the E-Mini has already breached the inflection point at 1632.25 which once again puts us back into a bearish stance. Now clearly anything can happen in the coming hours and what we’re seeing right now may be a fake out swing lower before they drive it back up – which would be almost humorous as that would make it a false Fakeout Sell signal 😉

If you think you are getting frustrated all the back and forth, then trust me, you are not alone. For the past few weeks we have been bouncing all over the map and tape like this isn’t fun. However, it’s important that we don’t fall prey to settling on a favorite directional bias. Get used to feeling lost as that is modus operandi of what a trader is facing every single day. As a matter of fact, the sooner we embrace this simple fact the better we’ll do on a long term basis.

Besides our price patterns we have a NLBL at 1642.5 (still from the June contract) which expires tomorrow evening. If we happen to reverse and breach it then I would take that as a credible long signal. Until that happens I am in bearish mode. By the way – did I mention I hate FOMC days?

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Cheers,