03/01/13: long SPX - looking for a trip up to 1560 next week

Markets gapped down to my target from yesterday, hit the low in the first 30 minutes of trading and rallied up to stall at the 1515-1520 area.  For most of the afternoon, price action traded in a very tight range.  It looks like price wants to break out of this range very quickly on Monday.

My target remains 1560s first week of March.  This could happen really quickly.  A gap up Monday open could be all it takes really.

After 1560s, I will be on the lookout for the end of wave 5.  The next target after 1560s is a trip back to where we started this year: 1420s.

Generally speaking, it is rather rare to see OBV make a new high and price never make a new high.  While not guaranteed, it is good odds.

I bought around 1505 which was my original target after price bounced off the low.  i thought maybe I could get better entry but markets didn't give that opportunity.  Next I bought another lot on the retrace which I quickly felt buyer's remorse since I generally avoid trading the middles.

This week was pretty good.  I think many traders out there may be frustrated at all the back and forth bull/bear sentiment but if you want to be successful in this business, you have to play whatever the market throws at you and turn it into lemonade.

Happy trading and have a good weekend