S&P Futures Update for Aug 10, 2012

No change in Weekly, Monthly or Daily Trend - the trend remains UP - see Daily Bar Chart (including Globex session) above.

We opened right at the center of Y'days range - the closer we are to the center, the higher the odds of a rotational market - which exactly what occurred today. I would treat the last 3 days as a Balance area and apply the Balance trading rules: -

1. Remain within balance;
2. Look outside of balance and fail; If the market fails on one extreme, the destination trade becomes the opposite extreme.
3. Look above or below and accelerate.

Thursday's POC was very prominent. Any Opening away from the POC has good odds of returning back to the POC. The exception is when the market single prints out of range which is usually a sign of high confidence. A breakout to the upside targets the April/May highs. A breakout to the downside targets Monday's low and then the 1384 area.