The Daily Dose of Trading Comments

Breadth is negative, confidence is waning (consumer confidence) and the market is heavy once again. Step back and look at the chart. We had three days up on lower volume. You have to expect the test of the lows off this pattern. That's what we are seeing here. The oversold nature of the market makes any plunge that could carry a lower probability event but it doesn't rule out a plunge. So, the higher risk/reward play is a fade of this lower move ... at the right time. I'm watching for an entry point based on price, time and volume intraday. I would like this purchase to be a swing trade and will use the general 1210 SPX area on a closing basis as a notion of whether we are right or wrong.