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[Dwer]

Market Force: Bullish (Caution). Market ready to move higher. Look to buy drops but Caution on BreakOut not supported by strong High 5.
Trade Setup Summary for Tuesday, May 18, 2004:
B@1090.25/ S@1091.25 +1.00 profit

Recap of Tuesday's Action:
Good Morning and welcome to Wednesday's action.

We got the higher gap up +4 on the open Tuesday and early run up confirming our Headline Call for bullishness but our Caution warning also was timely too as the markets just couldn't get the upside going strong. I was rather surprised by this as the High 5 were very bullish.

Now we see that overnight in the Globex market they are running em up to just below 1098.00. Here are my Wrap Up comments from our Live Update Service on how things went in the tight range market Tuesday.

"The market traded in an extremely tight range today with a bullish underlying tape.

Total range was near 6 points and the majority of the entire day's trade took place in about a 3 point range.

Our Headline Call was for a Bullish yet Cautious stance which is exactly how the market traded today.

We front ran the Hour One High at 1091.50 getting long on a recommendation at 1090.25. Prices took off nicely giving us some confidence in the trade but then later started the herky jerky wild swings from 1093 down to the opening price at 1089.00 area and back.

We held the position with clear instructions later in the session to take profits if we moved above the 1094.50-95.50 zone but no cigar with prices topping just under 1094.00.

We tightened up our stop to 1089.00 risking only one point on the deal and then got out of the trade 6-7 minutes before the Dow closing with a +1.00 profit.

So on balance it was one of those days where I was glad I decided to Front Run the BreakOut which gave us some extra cushion on the stop and the profit."

Today's Call & Briefing:
Our Call for today is for continued Bullish action and perhaps today we will see a larger scale rally take place.

With the Globex overnight action showing a jump to the 1098.00 area it will be interesting to see if they open above the 1100.00 handle or not.

The move overnight above the Pit Bull creates a case for a strong bullish move potential along with our other Market Force indicators.

We are still waiting for an "Opening Day" of a new Buy Mode so that is still pending with today as a potential. The Caution is still in the indicators as we did NOT get a more substantial rally with the High 5 really Mega Bullish on Tuesday.

WATCH FOR TODAY: Any pullbacks after the first hour to the Hour One low should be buying opportunities. We will be looking for Trailblazer chart formations there in order to get long if the High 5 support that action.

Maybe another BreakOut buy attempt in the cards today. Will have to see how things are setting up. Would like to Front Run that again but usually the same trading strategy for a special circumstance (like we had on Tuesday) will not be effective 2 days in a row. Because it did not totally pan out Tuesday (the front run and B/O) perhaps it will still be a viable approach today.

Will update on the Live Intraday Service in regards to this.

Value Area: 1,090.20 - 1,093.00
Trade holding above 1093.00 and especially 1095-96 is BULLISH for a larger scale move the first goal up of which is 1125.00.

I had mentioned this number a few sessions ago in relation to the first goal up IF a new Buy Mode had an "opening day" rally to kick things in. That number is in the cards if we move solidly through the Pit Bull and keep rolling.

I am expecting 2 days up from here on out.

Buy Pivot Target: 1,087.25 - 1,088.25
I don't expect we will get a pullback to here today. If so look to be a buyer.

Sell Pivot Target: 1,093.50 - 1,092.50
We have blown through this number on the overnight Globex trade as well as the +4.25 stop/pivot at 1097.75 which was tapped over night on Globex.

So watch for trade through this zone and higher for continued bullish action.

10 Day "Pit Bull" Moving Average: 1,096.90
Watch this number now especially for support/resistance once we get the trade going today. If it holds and we push higher we shall change our mind set to a Buy Drops mood overall as they run em up higher.

Pro Trader's Action
Today is going to be an important test day to see if we can turn around and start rallying or we are going to finish off some seasonal weakness rolling into the first part of June before we can take off higher.

Watch for supporting High 5 and the overall underlying response to the Trailblazer chart patterns. If we can get everything working favorably with strong spike moves up and little pullback against those then traders are getting long with conviction.

If we are still getting the herky jerky manipulations of some of the market manipulators then it means there is not enough one sided volume to really stop the shenanigans. So be it. We will just trade according to our Market Force indicators and scalp what we can on the right side of the market.

Look forward to seeing you in the action. Mohan