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Online Trading Tool: Pit IQ (Pit Intelligence) - Daily Online Trader Access to Trading Key Strategies, Setups & Levels live from the CME Trading Floor (Pits) in Chicago.

Tuesday 02/07/12 – Key Futures Trading Levels via CME Pit IQ

Equity Futures:

Online Trading Tool: Pit IQ (Pit Intelligence) - Daily Online Trader Access to Trading Key Strategies, Setups & Levels live from the CME Trading Floor (Pits) in Chicago.

Wednesday 02/01/12 – Key Futures Trading Levels via CME Pit IQ

Equity Futures:

As a 20 year trader I have picked up on patterns in the stock market and one such pattern which I fully subscribe to is that Fridays tend to reverse the dominant trend from the week.  With this holiday shortened week behind us and a 22 handle rally in the S&P 500 in just three trading days leads me to believe that today will produce a negative return for the index.

The basis for the theory is that I believe swing traders control the near term direction of stock prices.  Many in the swing trading community, including me, like to forecast a direction on Monday/Tuesday and exit those positions on Friday if stops have not been triggered.   So a week like the current week would say that long sided swing traders are still in there positions and will look to liquidate and take profits sometime around 10:30 am and start their weekend early.

Technically speaking the ES_H2 could use a nice pullback with a 70 RSI and 1315 looming as solid resistance.  As I write this, the index is on an early morning S3 pivot buy signal.  Identify the overhead resistance in your names and follow the direction of the big money.