Henry Ford's MarketWatch LIVE!

3:48 PM
CLOSING THOUGHTSVery nice day...Trader's MOC orders are in and we are going to go out near the highs it appears, which is where we would like to be...Still expect some dithering around before we break those recent highs, but I don't mind being pleasantly surprised once in a while...Even the NDX managed to pull itself up by the bootstraps and is mimicing the SP and DOW...powerful moves can come out of unified confirmations such as these.....Tomorrow we will start tearing apart the NDX patterns to see where those may lead....Looking ahead, it's a fairly quiet earnings session after the bell, highlighted by Emulex (ELX 23.28 +0.93), Pixar Animation (PIXR 41.50 -0.09), Western Wireless (WWCA 2.49 -0.42)... It's a quiet day on the economic calendar tomorrow as only Productivity comes out. NYSE Adv/Dec 2163/1049... Nasdaq Adv/Dec 1853/1426.
Meanwhile enjoy the evening and let's do it again tomorrow.
:: Henry Ford ::

3:28 PM
UPDATEThe predicted MINIMUM ultimate targets for the Indices from this breakout are DOW 8992 and SP500 futures @ 939
:: Henry Ford ::

3:03 PM
UPDATEYou can see we are approaching the upper blue line which was the top line of this current Fibonacci set. Those were the melt-up levels I gave you, I don't expect them to be taken out today...we are now short term overbought again, so will probably see some pullback or sideways consolidation for a while....

:: Henry Ford ::

3:01 PM
UPDATESorry I haven't been back in a while, but the market is doing what it is supposed to and I have been stomping out forest fires...We are coming into the time of the day I call the 3PM bubble when rallies can get squashed...If this one doesn't we are on our way to challenge the primary Fibonacci tops on the DOW at just over 8758 and 912 on the SPFutures...once through these zones, (which will be hard to do today with curbs on), we would see a melt-up as shorts were forced to cover and momentum players jumped back in to get another rally leg under their belts...
:: Henry Ford ::

1:50 PM
UPDATESo far so good...orderly rise to test 8600...we will see what happens when the "BigBoyz" get back from lunch
:: Henry Ford ::

1:13 PM
UPDATEThings have stalled here as they have done every lunch hour for the past week...Don't expect much before traders get back from lunch at 2-2:30PM...If anythng changes will be back on.
:: Henry Ford ::

12:08 PM
UPDATESP500 Futures has poked above the declining tops trendline, but not convincingly yet. The DOW is still flirting...getting into the lunchour now
:: Henry Ford ::

11:20 AM
UPDATEHere is the SP500 futures contract...you can see all the head banging that's going on here....

:: Henry Ford ::

10:51 AM
TRADE CLOCK
By popular request here is the trade clock once again for a general idea of where we normally see volatility throughout the day.

Restating the obvious Red zones are times for the amateurs to stay away, yellows are usually flux/change opportunities and green are usually continuations of current trends. First half hour is called "dumb money" when wannabees try to jump on a moving train ....last half is called "smart money" when traders set up their positions for the next morning.
:: Henry Ford ::

10:18 AM
UPDATEMeanwhile during the time I have been writing DOW and SP500 went up and hit those declining trendlines and bounced off with exacting precision...tell me that nobody's watching!!!
:: Henry Ford ::

10:15 AM
SYSTEMS DEVELOPMENT As many of you are aware I have been working for several years on an automated intraday trading system for the major indices. We are within a month I believe of putting the system back on line with the first index to be tracked being the volatile NASDAQ NDX Tech Index. Backtesting using live and historical data is coming in with better than 80% winning trades which we will be able to provide the data for when we go online. Again, we cannot give trading advice, so we will be publishing this system as an eductional tool which you can follow along with us to learn what we look for and how we do it. This NDX 100 system will be FREE for RoundTable subscribers who have joined us before we bring this new service into the mix. Eventually we hope to add the DOW and SP500 as well as individual Industries via ELF's that have enough volatility to make this type of trading workable..
:: Henry Ford ::

10:04 AM
UPDATE If the BOYZ have decided they have done enough accumulation, they could easily kick the SP into the ether to try to get the shorts worried, but normally at long term decline lines like this they tend to head-butt the line for a while before taking off..
:: Henry Ford ::

10:00 AM
UPDATEStalling now at upper trend lines ...This is anticipated if only because it is sometimes difficult to determine what's wagging what. Trend lines and Fibonacci Resistance and Support lines are so widely followed by every manager and trader in the business that they can become a self fulfilling prophecy. We don't care as long as they continue to work...so much the better. In actual fact all price action is supply and demand reactive and can't get too far out of whack.
:: Henry Ford ::

9:54 AM
UPDATEThe real magic happens when we break 8760 DOW and 912 SP. A break to the upside could see another 700-900 DOW points very quickly
:: Henry Ford ::

9:45 AM
UPDATENAZ is the weak sister here this morning as DOW and SP head for that major declining trend line, but we are in a short term overbought cycle on the 13Hour RSI. That upper green line is MAJOR long term resistance and gets the Indices into the area where we should see massive short covering. Bears believe the current run will top out there and collapse through the rising red support line. This tug of war will ultimately be resolved with a high volatility break with my bets being on the long side.

:: Henry Ford ::

9:38 AM
UPDATEAs I thought, the gap closed in the first minute and we are now getting a bit of a pullback...Here's how the DOW looked about 5 minutes after the open.

:: Henry Ford ::

9:31 AM
UPDATE We start off this morning following what appears to be a breakout of the smaller trianglular pattern we followed all day yesterday. Remember, as I said in ending day notes, these formations will pull bact to the breakout area over 50% of the time, wo wouldn't be at all surprised to see that occur. Will post the opening DOW chart here shortly.
:: Henry Ford ::

9:13 AM
UPDATE Modest open this morning...there will be a gap on SP Futures, but should be in a range that can close quickly.[BRIEFING.COM] S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: -2.0. The equity futures are sliding here as we look for only a slightly higher open. Early strength as a result of the IMF $30 bln bailout of Brazil has faded as traders may look to take profits after yesterday's surge into the close.. Overall, retailers are guiding higher, but the consumer electronics space is under pressure on warnings from BBY and ULTE.

:: Henry Ford ::

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