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[Dwer]

Market expected to push higher today but we will continue to look to sell rallies for later pullback off the highs.
Recap of Tuesday's Action:
Good Morning and thank you for joining us today.

On our Headline Call for Tuesday we were looking to the opening as a key element in deciphering market direction. Well, we got a FLAT opening combined with an early run up towards the Sell Pivot target area suggesting the lower move first.

The B/O was the first Hour One pivot hit right at this Sell Pivot target area so traders went short there with the TRIN above .80 along with a weaker looking High Five. The prices pulled back nicely off of the B/O and we hit the BreakDown fairly early in the session. This would have been the spot to cover the trade after they made several attempts to hold below the B/D but couldn't. That trade produced up to 5 points.

From our Headline Call you could see that we weren't quite sure what the later part of the session would be like so we had indicated in the call that the key would be to see how prices reacted to the opening at 1022.00.

The S&P500 staged a small rally off the B/D and from the emails I got some of you bought the market there and did well if you patiently held through the afternoon noise and quiet trade.

The overall High Five readings today had an early bearish tone to them but mid morning the NAZ (our nickname for the Nasdaq composite index) started perking up showing readings of +10 and more and the rest of the market started following the NAZ lead moving higher. So Tuesday fufilled some important moves in the market which sets up our Headline Call and briefing for today.

Today's Call & Briefing:
What is going to be challenging today is finding out when the market will hit a peak and start to feel some pressure. As you can see from our Headline Call for today we are expecting the market to continue to move higher and then later in the session start to consolidate near the highs with some pullback.

It is not expected to be a down session necessarily later in the afternoon but a pullback off the highs. Now there is a strong possibility today of a BreakOut Buy so we want to be on the lookout for the special criteria for that as outlined in the TCF Trading Handbook.

Overall we still appear to be in a low range rather trendless direction in the market. Our Market Force indicators are in the Sell Mode and we are looking for completion of that mode with prices heading lower. As mentioned yesterday we do not feel like there will be a larger scale drop but just some further erosion. So with all of this in mind here is where we sense the best trading action will be today.

TCF TRADE SETUPS TO WATCH FOR: As mentioned earlier, be on the lookout for a full on BreakOut buy today. Although we are expecting higher prices today that fall back later in the afternoon what we saw with yesterdays attempt to breakout tells me they may make a stab at a full rally today. As with all things trading of course this is not assured but the good possibility is there.

We are not expecting a Bear Ugly setup to occur today and would be willing to Buy the B/D today if the day has not set up too mega bearish looking We are not going to trade the Buy/ Sell pivots today but watch them and the +/-4.25 stop/pivot for evidence of specific market bias.

Come Join me in Del Rey Beach, Florida on November 1st and 2nd along with Mark Douglas, my most highly recommended Trading Zone coach for a weekend of intense study of the TCF Trade setups. I am going to cover in extreme detail ways you can move your trading to the next level using our daily Morning Call briefings and the TCF Trade setups. Space is filling up fast for this exciting 2 day event with other special guests joining us too.So be sure to Call our office at (800) 806-4801 for reservations and information. I will look forward to meeting you there.

Value Area: 1,020.40 - 1,025.00
Watch for prices to hold above 1025.00 to stay bullish. Drawing down to the bottom of the VA is Ok if they continue to push up and find support above the 1025 to confirm the bullish tone. If we head back below the VA down to the 1017.00 area then we will be at a crucial spot for important decision making. Moving lower will run em down to the 1013-14, then 1011 before looking to reach the 1005 area. As I have mentioned this week the lower side goal is 997-998. Yikes. That would not destroy the bullish trend upward but would throw a wrench in it. Our Market Force indicators are calling for this lower move unless we hold above 1027.00 area solidly.

Buy Pivot Target: 1,020.25 - 1,021.25
No Trade at this Pivot Target today.

Sell Pivot Target: 1,029.50 - 1,028.50
No Trade at this pivot target today. Watch for resistance up at 1033.75 (+4.25 stop/pivot) and with a strong B/O look for prices to plow through that. If that occurs and you didn't get long then a reflex pullback to the 1029 area could give the chance to enter long on a "Sell Pivot becomes Buy Support with a bullish High Five". You can read about this trade in the TCF Trading Handbook.

10 Day "Pit Bull" Moving Average: 1,022.80
Prices are currently toying with this price area trying to decide which way to go. We should have a bit more urgently needed information after todays session. If we do get the expected higher prices today with weakness following that in the later session then Thursday will be a crucial piece of the puzzle.

Pro Trader's Action
Overall we are planning for early higher prices. Be on the lookout for an early move which we often refer to as a "Too Much Too Soon" type move where they rally hard right off the open. This would cause us to want to look to get short a bit earlier as this type of action would "throw water on" the chance of a Bullish BreakOut.

Otherwise, I have described pretty clearly today what to look for and will be going over some of your most recent questions today on the "Ask Mohan" section. I'll email you after I've posted them.

All the best of luck and success today in your trading. I'll see you in the action. Mohan