Market view

There is a few things which were very interesting yesterday - and this suggest that the pullback I'm looking for now is right around the corner....

Remember its job day today - which means if we open up higher we will most likely close lower and vica versa, if we open lower we will closer higher.

The things is that my thesis and everything remains smoking bullish into Xmas time ,, but there is a very good possibility of a fast pullback to 1220 (ONLY TO TRAP MORE BEARS...)

Overall thats a good possibility soon and actually I got a position in TZA as a I began to see a bearish pattern in the markets 2 day chart.

Futures up quite a lot 1% as I'm writing , but seems to me they will rip it in futures for thereafter to fall a bit more back when markets opens and possible near red.

What is interesting is that actually TZA made a BULLISH harami pattern candlestick and TNA made a bearish harami - which is USUALLY no good for markets. This means a reversal is very possible soon (and thats why I expect a potential pullback) - I might take the swing trade profits if we gap up higher today in the markets as I see this pattern and as a pullback is very good if we want to continue to 1300+ in December.

There is also the possibility (just saying possible) that we backtested the neckline of the bearish pattern seen last month.... look on SPX 30min chart.


So all in all - I remain bullish into Xmas overall but a fast little flush would be good ,, the bearish harami patterns worries me a bit staying long and therefore we will see how mkts opens , I might take the profits in TNA and EDC which are in good profits now - as there is a good possibility we see a pullback to 1230 or even 1220 before we take out 1292 highs :-)

See you all in room www.nwatrading.com :-) have a nice day and weekend !