Inside Day

The market just needed a day to take in what has happened in the past week. I still believe the trend will remain bullish. I believe that we will see some resistance in this area but ultimately go higher again. Bull markets are very hard to day trade because you are constantly thinking that the move higher is over and you are possibly long from the top. You have to be disciplined and use your short term charts to find areas of support. Buying breaks and not buying into rallies. I struggle with this myself. Everyone seems to believe that we are going higher and that is easy to fade because most people tend to take the contrarian trade. When everyone is one way you should be the other. I believe in that but sometimes it just plain doesn't work until you are long out of the market. You have to be patient and let the market tell you when it is time to sell. Today I put in a daily chart of the S&P cash from March 2006 to show you what we did last time we crossed 1300 in the S&P. You will see that we gradually moved higher to about 1326 then slipped back down to 1220 to only rally back up to 1390 all in a 8 month period. This tells me that we should start get pretty volatile in the next several months.