Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.


Well, it pays to play chicken sometimes, doesn't it? My work warned me not to trust this AMs rally, and to treat it as a counter-trend move, because it could reverse at just about any time, and sure enough the E-SPZ peaked and reversed right in our projected recovery target zone of 1107-1109. Having said that, however, the noon-time "swoon" from 1108.75 to 1100.50, while negative, does not necessarily tell me that the counter-trend rally is over. In fact, unless the E-SPZ takes out 1098, my preferred scenario calls for another rally effort that revisits 1109. Will I take chance on going long to participate in that move? Nope! Why? Because if my work is correct, when THAT rally ends, the E-SPZ will plummet to new lows beneath 1093.75 -- and that could happen so quickly that we are unable to get into a short position other than by selling into some nasty weakness (always a hazardous exercise) . . . So, let's be patient, and see what develops in the final couple of hours of today's session prior to committing funds to the short side.

For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary at. Or try his QQQ Trading Diary.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!