Buy Point in S&P 500

Daily chart for the S&P 500 September futures contract. June saw the culmination of a horrible quarter for the stock market. From the highs of late April to the low on July 1, the S&Ps were down over 16%. The talking heads were talking “Double Dip” recession. I was considering a major short position. I saw the dramatic break below the late May and early June lows. I was remembering Prechter’s prediction of 1000 on the Dow Jones and thinking this is “IT”.
Then, I delved deeper into the charts. A few key points why this might NOT be the break revealed themselves. First, price was right at the bottom of the rough channel carved out since early May. July 1 saw buyers come in and push the market higher off this point. This is evidenced by the large “tail” on the July 1 candlestick. Read the rest of the article here. www.staffordtrading.com