Well on a national bank holiday some important events transpired today, first being the Dow Cash Index (Not Futures) closed its breakaway gap from the post Lehman Bros. collapse last fall as seen in this chart above. This is the equivalent of the 1096 ES gap that started the whole crash sequence. Mind you that we close the ES at exactly 1096 today, these guys never cease to amaze me!
Next series of charts shows the downtrend line from all time highs from 2007 on the SPX cash index in both linear and log chart formats. Right now the log format is coming in at 1150’s as the linear was hit today. Could be a minor reaction here, but from my research on longer time frames log scale is the way to go. And what I am expecting by years end to see us trade in the 1150’s. So pretty exicting day giving the Holiday!
My trade is still very much on, new profit target has been moved to 1106, so I plan to make over 20 pts on this trade. Holding my ground and keeping emotions out of it, Observe and Act!