Back to Back Issues Page
Kennys Stock Market Trading - The Week Ahead 09 May
May 08, 2011

Issue# 0016 09 May 2010

Stock Market Trading

Traders Day Trading & Kenny's Elliott Waves Blog

Free Newsletter!

Having trouble viewing this newsletter?
Copy and paste this URL into your browser to view as a web page.
Stock Market Trading at Traders Day Trading

Learn How to Trade...

Learn How to MAKE MONEY!

Subscribe to EWI's Financial Forecast Service now and
pay just $99 for your first 3 months a 57% savings.

Learn More about this Limited Time Offer


Welcome to Stock Market Trading the new look newsletter for 2011 from Traders Day Trading & Kenny's Elliott Waves Blog.


S&P 500 Cash Index - The Week Ahead

The Week That Was...
On Friday we had another Fantastic Free Friday from Khalsa and you will know from the commentary there that we had another great days trading. Thank you very much to Khalsas for that.

It was an amazing week where the numbers played out very much as planned. I forecast the price range for the week to be 1370-1334 and
what we got was.....1370-1329.

I planned to enter swing short, and have another go at a position trade short from 1370. Both trades worked out extremely well as the market  declined into the swing trade target at 1337 on Thursday, before a bit of volatility which continued on Friday. Those are the markets that I love to trade intraday. Fast moving and with a decent range.

The Week Ahead...
So the question for us this week is, are we in the initial stages of my 'fairly spectacular move down' phase, or has the S&P500 found support on the channel trend line that was previously resistance, setting up another bull run?

"If the "One degree of trend upwards" 'B' wave count on the chart is correct, the market should be due a fairly spectacular move down once the 'c' wave is complete. That means we just have to pin down 'c' to within an acceptable margin of error. "

"What I am talking about here is the potential for the S&P500 to shed at least 160-200 points over the next few weeks."

"The larger cycles are still pointing upwards but are now much nearer the sweet spot. "

It will be no surprise to you that I do believe that the market has topped and this should ensure a decline through to late in the month. The Long term cycle would still be early, but that is what is expected as I believe that the larger bull run is at an end, and the 'c' wave of 'B' is now complete.

The week ahead should therefore see a continuation down, but there is a possibility that the long term cycle may have some life in it yet and could allow for another pop above Fridays high, further back testing the validity of 1370 as the top.

On Friday, I suggested that the market would close actually closed at 1340 and quotes then dropped to 1338. I believe that cash will gap down below this when it opens on Monday and then can fill the gap before heading down for the week.

The alternative scenario is that 1137 will hold and there will be an attack on Fridays high again.

Pivots Monday Weekly Monthtly
R3 1380.94
1429.42 1480.68
R2 1362.16 1388.03 1410.82
R1 1351.18 1364.12 1387.21
Pivot 1343.38 1346.64 1340.96
S1 1332.40 1322.73 1317.35
S2 1324.60 1305.25 1271.10
S3 1305.82 1263.86 1201.24

Current Week Month   Stock Market Trading Trend Down Year  Stock Market Trading Trend Up
Open 0 1365.21
High 0 1370.56 1370.56
Low 0 1329.17 1249.05
Range 0 41.39

Previous Day  Stock Market Trading Trend Up Week Stock Market Trading Trend Down  Month   Stock Market Trading Trend Up Year  Stock Market Trading Trend Up
Open 1340.24
1365.21 1329.48 1116.56
High 1354.36 1370.56 1364.56 1219.8
Low 1335.58 1329.17 1294.70 1011.40
Close 1340.20 1340.20 1363.61 1258.84
Range 18.78 41.39 69.86

Key Support and Resistance Levels


High? 1344
Current 1340





Low? 1273

Bold Numbers = Stronger Support and Resistance

Trade Set Ups for the Week Ahead

Following the washout on the previous weeks trades, last weeks 2 trades recouped those losses and nearly as much again. These weeks 2 trades alone were worth a total of 63 points to me, at the close of play on Friday.

The swing trade short from 1370 banked 33 points on Thursday when it hit the 1337 target and the position trade is currently running 30 point in profit. The stop loss on this trade has now been brought down to break even, giving me a free ride on that trade from here.

This week I want to add another position short. If this had been a daily newsletter I would have added it at Fridays high at 1354 but as it is I will have to let my money management rules take care of me.

NOTE: For this format I am using a 10 point stop loss on the weekly trade set up, 3 points on the day trade set up and 15 points on a position trade, unless otherwise indicated. 


Kennys Stock Market Trade for the Week

Market Trade Open Target
S&P 500 Cash Index Sell 1342 1313

Kennys Stock Market Position Trade

Market Trade Open Target
S&P 500 Cash Index Sell 1344 1175

Open Positions

Kennys Stock Market Position Trade

Market Trade Open Target Stop
S&P 500 Cash Index Sell 1370 1175 1370

Kennys Elliott Waves Blog - View Latest Chart Analysis
Kennys Technical Analysis Charts

***Site Announcements***
Share It - There are new social media buttons on every page. Please do me a big favor and share my site whenever the opportunity arises.

Why not start here..Got a twitter account? Retweet the Traders Day Trading Site today....Digg it....Share on Facebook....mail it to a couple of friends....however you want to do it, it will all help.

Good Luck and Thank You for subscribing to Stock Market Trading, please do me a big favor an send it to a friend who may find it useful.


Elliott Wave Principle, Now Available Free:

Robert Prechter has just released a complimentary online edition of Elliott Wave Principle: Key to Market Behavior. All 248-pages of this classic investment book can be on your screen in just minutes. Elliott Wave Principle will teach you the 13 waves that can occur in the charts of the financial markets, the basics of counting waves, and the simple rules and guidelines that will help you to apply Elliott Wave for yourself. You'll learn the method successful investors have used for decades.

Access Your Free Copy of Elliott Wave Principle, Now.

What else is happening at Traders Day Trading

  • Kenny's Elliott Waves Blog
  • Elliott Wave Theory
  • Financial Spread Betting
  • Stock Chart Patterns
  • Money Management
  • Stock Market Basics
  • Trading Books Best Sellers
  • Khalsas Free Friday - Day Trading Analysis
Stock Market Beginners
  • Learn How to Trade
  • Stock Market Game
  • Beginners Trading Course
  • Free Interactive Spread Betting Tutorial
  • Free Position Size Excel Worksheet with Calculator

Subscribe to Receive

Stock Market Trading 

Free Newsletter provides free information and analysis to be used for educational purposes only. Information provided here  should not be taken as financial
advice or an inducement to trade.
Full Terms & Conditions Available at

Back to Back Issues Page