Summary: But, if mid term up-channel support levels break sizeable declines could follow.

We are expecting the Markets to decline slightly from these levels until such time as mid term support levels are tested again.  Mid term support levels should be very important to the Markets.  If mid term support levels hold, the up-channels will remain in place and continued Market increases should be expected from there.  However, if mid term support levels break lower the swing related charts tell us that sizeable Market declines could follow.  Watch 1210 in the S&P as a support level which, if broken, would signal that additional and aggressive declines could be forthcoming.  A clear warning exists:  If mid term up-channel support levels break sizeable declines could follow.  Therefore, treat mid term support levels as inflection on Thursday..

Get Swing Trading Ideas now:  IDEAS

Current Positioning:

We should have closed any open trades made near 2096.  We were likely stopped when the Market tested 2100.  At that same time though, after closing our open short, we should have established balance around 2100, and eventually, we should have taken an additional short position to overweight shorts.  We should currently be holding 2 shorts with a downside target of 2070.

These Parameters are telling us to trade the Market as follows...

These Parameters are telling us to short the Market near 2100 if that level is tested first, with a downside target of 2070. However, if 2100 breaks higher, these same Parameters tell us to expect 2190.

Conversely, if 2070 is tested first, these same Parameters tell us to buy the Market with an upside target of 2100. However, if 2070 breaks lower, these same Parameters are telling us to short with an expected target of 2000

Remember to review the rules of trading and remember to add balance if a Parameter begins to break higher or lower.

IMPORTANT: The rules of trading say that a test of support or resistance Parameters occur in the NASDAQ when the NASDAQ comes within 3 points of our trading Parameter (15 points for the DOW and 1.5 points for the S&P). When, for example, the Market comes within 3 points of a support level, and, according to rule, we look for a long position, we would refer to the Focus List at that exact time to find which stocks are best to trade. In order for our system to work efficiently for Market-timing purposes, we must look for trading ideas at the exact time the Market offers us trading signals as indicated from the Parameters above.