Before the Open (Nov 18)

Good morning. Happy Friday.
The Asian/Pacific markets closed down across the board. South Korea and Taiwan dropped 2%, and Australia, China, Hong Kong, Indonesia, Japan and Singapore dropped more than 1%. Europe is currently mixed, and not one index has moved 1% from its unchanged level. Futures here in the States point towards a moderate gap up open for the cash market.
Here’s the triangle pattern on the 30-min chart we’ve been following since last week. The S&P not only took out support but also the two previous lows from within the pattern. I’m not one who likes to draw lines in the sand and say: if x price level gets taken out, the game is over. There are far too many false moves to be that rigid. Also there is usually another level to key consider. In this case, that level is 1200 which is a whole number, and it’s identified by a trendline drawn parallel to the upper trendline and through a low in the pattern. If that level is taken out, I will be more interested in selling rallies.

The market here is still being held hostage to the Europe, and since Europe is unpredictable, I’m being conservative with my trading. On any given day we can wake up and see the S&P futures up or down 50. No thanks. I’m trading but not being aggressive and not taking home big risk. More after the open.
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