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Correction - Kennys Stock Market Trading - The Week Ahead 22 Feb
February 21, 2011

Note* Sorry about the typo reading 1153 instead offfffffff......of course 1153....I just can not get that number into my head - Doh!


Issue# 0005 21 Feb 2010

Stock Market Trading

Traders Day Trading & Kenny's Elliott Waves Blog

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

Important, the information provided here is supplied for educational purposes only and should not be taken as financial advice or an inducement to trade. Please refer to the full terms and conditions at  and seek independent financial advice where necessary.

S&P 500 Cash Index - The Week Ahead

The Week That Was...
Khalsa gave us another fantastic Free Friday and if you have not yet had the chance to take a look, please do join us next week. Don't forget that you can also benefit from a free weeks analysis over at when you register for Khalsas free forums and contact K to request your free week, quoting Kennys Elliott Waves Blog

In last weeks newsletter we were looking for a bit of a reaction downwards from the resistance of the rising channel trendline at 1333 on Monday with a target at 1324, as 1323 became a key pivotal level.

"I can see no real reason why 1330 should mark an important top and the next major fibo is the 78.6 retracement at 1381"

As it happened, 1333 did touch on Monday and 1324 was where the dipsters came back in, buying the market right on cue.

The market then continued its grind higher this week with the S&P 500 Futures reaching the C = 0.618 x A at 1342 on Friday as we discussed in the Khalsas  Free Friday blog post. This was still short of the equivalent target on the cash market with a potential 1353 target on the cards.

The Week Ahead...
We decided to run a swing short from Friday based on reaching 1342 and futures have taken a bit of a dive today. Cash markets were closed due to the Presidents Day holiday.

Quotes for the S&P 500 cash market are currently quoted down 10 points from Fridays close and is sitting on the channel trendline again after slightly overshooting it during the week.

So the question now is, did the market top or not?

Unfortunately it will take a lot more than that 10 point drop to confirm a trend change so care must now be taken to protect that swing short position.

Pivots Monday Weekly Monthly
R3 1353.63
1376.15 1372.24
R2 1347.68 1356.69 1327.19
R1 1345.45 1349.85 1306.65
Pivot 1341.73 1337.23 1282.14
S1 1339.40 1330.39 1261.60
S2 1335.78 1317.77 1237.09
S3 1329.83 1298.31 1192.04

Current Week  Stock Market Trading Trend Up Month   Stock Market Trading Trend Up Year  Stock Market Trading Trend Up
Open 0 1289.14 1257.64
High 0 1344.07 1344.07
Low 0 1289.14 1257.62
Range 0 54.93 86.45

Previous Day  Stock Market Trading Trend Up Week Stock Market Trading Trend Up  Month   Stock Market Trading Trend Up Year  Stock Market Trading Trend Up
Open 1340.38 1328.73 1257.64 1116.56
High 1344.07 1344.07 1302.67 1219.8
Low 1338.12 1324.61 1257.62 1011.40
Close 1343.01 1343.01 1286.12 1258.84
Range 5.95 19.46 45.05 208.4

Key Support and Resistance Levels

High? 1353
Current 1343
Open Gap 1310.87
Low? 1293
Bold Numbers = Stronger Support and Resistance

Trade Set Ups for the Week Ahead

Last weeks trades were looking to sell 1333 on Monday targeting 1324 and worked out perfectly hitting the entry near the close of play on Monday.  The weekly trade ended up losing, but in reality that trade should also have been closed in a profit. As soon as it became clear that we were going back up it should have been closed.

For this format I am using a 10 point stop loss on the weekly trade and 3 points on the day trade. This resulted in a -2 for the weekbut sould have been nearer +14.

It is important to remember that technical analysis does not tell us what will happen, it is about the odds and probabilities of what to expect to happen given a certain set of circumstances.

As circumstances change so must expectations, and trading plans must be adapted to fit those new circumstances.

That said, I do not give up easily and will continue to try to develop the format in to a useful resource.

Tuesdays open is all about that trendline support. Bears need to convert it back into resistance to avoid a straight run to 1153.

The cash markets open is likely to see prices drop lower but we can not short from down here as it is quite possible that a reversal back higher would trigger enough stops so see a run straight to 1153.

Kennys Stock Market Trade for the Day

Market Trade Open Target
S&P 500 Cash Index Sell 1353 or Best Price 1344

Kennys Stock Market Trade for the Week

Market Trade Open Target
S&P 500 Cash Index Sell 1343 (from Friday)
 or Best Price

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