Back to Back Issues Page
Kennys Stock Market Trading - The Week Ahead 22 May
May 22, 2011

Issue# 0018 22 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!

100+ pages of Free Analysis
***Analysis of every Major World Market***
100+ pages of free analysis of every major world market, including global stock and interest rate markets, gold, silver, crude oil, and currencies.
A $49 value --FREE until May 31.....

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...
Once again the predicted high of the week was pretty good as it actually came in at 1346 vs the 1344 forecast.

The expectation was that once the key support at 1337 broke, the next key level at 1325 would be the next target and key pivot point. I did expect that it would ultimately give way. The various trend lines were eneough to provide support and allowed the bulls to recover 1325 on the first test, but did close under 1337 for the week resulting in a doji candle on the weekly chart.

It should be no surprise as Doji candlesticks are a sign of indecision and that mood was clear towards the end of the week.

The Week Ahead...
It is easy to lose sight if the bigger picture when you can't see the wood for the trees, but keeping it simple on the larger scale of things, what actually happened this week?.....It was the predicted break and consolidation below 1337....Monday, Tuesday and wednesday then became all about 1325 and the channel trend lines supports.

I will now be evident to all and sundry, exacly how imortant this 1337 level is and I suspect that there will be a few lining up to buy it again on Monday, but I do think that it has now reached the point where it should now break.

As you already know, I believe that the longer term cycles are in the process of rolling over and a break of 1337 is likely to seal the turn. This should result in a fairly sharp move down as stops are tripped and the new trend becomes evident.

The questions we need answers to this week are, did the break of 1337 seal the deal, and how much support was built up from holding the trendlines? Enough for another run at the highs?

Fortunately we do not need to know!

As ever, it is not a question of being right or wrong is impossible for anyone to know which way it will go. (I had this discussion a while back with some folks who did not quite get it, hopefully it is becoming clearer exactly what I was talking about). There is no point in wasting time trying to be right, the market loves a trader with an ego and a point to prove.

We will leave 'being right' to those other folks......

What we can do, is to format a sensible trading plan that controls our risks and gives us every opportunity to bank some points.

That plan for this week will of course be based on the fact that the S&P500 did indeed break and consolidate below 1337 as expected.

So basically, I want to be short unless the market which case, my money management strategies will kick in to protect me.

Pivots Monday Weekly Monthtly
R3 1357.97
1389.49 1480.68
R2 1346.64 1361.18 1410.82
R1 1339.96 1347.22 1387.21
Pivot 1335.31 1332.87 1340.96
S1 1328.63 1318.91 1317.35
S2 1323.98 1304.56 1271.10
S3 1312.65 1276.25 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 1318.51 1249.05
Range 0 52.05

Previous Day  Stock Market Trading Trend Down Week Stock Market Trading Trend Down  Month   Stock Market Trading Trend Up Year  Stock Market Trading Trend Up
Open 1342.00
1334.77 1329.48 1116.56
High 1342.00 1346.82 1364.56 1219.8
Low 1330.67 1318.51 1294.70 1011.40
Close 1333.27 1333.27 1363.61 1258.84
Range 11.33

Key Support and Resistance Levels


High? 1344

Current 1333





Low? 1273

Bold Numbers = Stronger Support and Resistance

Trade Set Ups for the Week Ahead

Last weeks swing short entry from 1339 banked 6 points for the week. The low was 1318 so there was a potential 21 points in the trade. However,the target of 1309 was just a little bit too optimistic, and in real time trading it would have been prudent to bank what was available on the failure to close below 1325.

I still want to allow for that elusive, larger drop to take shape, but it is perhaps trying to tells us something by its failure to get on with it. The longer this goes on, the more likely it will be that the bears drop the ball again.

With this in mind, I will only take this weeks trades it it looks like the market is going to find resistance. They will not be entered if the market has dropped first, backtesting the support. That scenario would probably mean that we are heading for 1360 instead.

The open position trades are currently running at 37 and 24 points in profit.

Stop loss levels on both position trades should now be lowered to 1351 as that was given this week as the Make or Break for the Blue, bearish wave count.

NB: That is not to say that 1351 can not be broken before reversing again. It would just mean that the Blue wave count was negated, and I would want to lock in some profits on those trades, until it becomes clearer what is going on....if it happens.

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 Day

Market Trade Open Target Notes
S&P 500 Cash Index Sell 1335 1321 Trade Entry Valid
for Mon/Tues Only

Kennys Stock Market Trade for the Week

Market Trade Open Target Notes
S&P 500 Cash Index Sell 1333 1303 Trade entry valid
for Mon/Tues only.


Open Positions

Kennys Stock Market Position Trade

When Opened Market Trade Open Target Stop
Week 2 May S&P 500 Cash Index Sell 1370 1175 1351
Week 9 May S&P 500 Cash Index Sell 1357 1175 1351

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
 *** Free Online Edition ***

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.

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