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[Dwer]

Market Force: Bearish on rallies. Market wants to push a bit higher today but look for sell off from mid session highs.

Trade Setup Summary for Tuesday, June 1, 2004:
S@1118.75/B@1115.00 +3.75 pts.

NOTE: As of April 19 when we completed some important research/retools on TCF2004 we are now up about +41 pts on our LIVE signals which reprsents 100% return on margin in 26 trading sessions before commisions.

Required Disclaimer:Results are hypethetical. Past performance is not necessarily indicative of future results and there is risk of loss trading futures.

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

Our Headline Call read, "Look for a higher opening above 1121.00 and an early move higher to be bearish for today."

This is exactly what we got as prices ran up and tapped 1122.50 at the Sell Pivot target and came down all day moving to the lows at 1112.50 10 handles lower.

Here are my Wrap Up comments on the Live Update Service about how we played the action.

"We got short today following our Headline Call/Market Force direction on an early move up.

Prices went up and tested the exact Sell Pivot target and I got signals for a safer entry on the charts around 1119.00. Our official trade price recommendation was 1118.75.

We were originally looking for the market to drop below 1116.00 and then lower below 1112.00 if we got certain signals. As the day traded on we broke 1116.00 and then later 1114.75 on a Traiblazer Down formation.

After a weak rally they hit em lower later in the session so we began honing in on 1112.00 as a covering spot.

I got notice that an underground cable had been knocked out in our area as I had noticed my server slowing some. I got the posts out to you as quickly as I could and any changes. Luckily we were not in a fast market at the time.

I had put out a post to cover the short at 1113.00 and prices dipped to 13.25/.50. I put out a second post to cover em at 1115.00 or lower and shortly after the post prices tapped 1115.00/1114.75 so I will use this as our official covering price for the short (1115.00).

That is a +3.75 pts profit on the short trade today.

Prices ran up later in last half hour of the session restoring the bullish tone somewhat without any specific cause."

Today's Call & Briefing:
There are two important scenarios to watch for today. I have isolated the most prominent one in the Headline Call. We are simply expecting more of what occured yesterday only with an early rally that tries to play out more to the upside.

If we get the BreakOut High as the first Hour One pivot we would expect the market to attempt to rally. Once that occurs we could look to go short when the rally loses steam.

CAUTION: we want to make sure we are not selling into a genuine BreakOut buy of which there is that possibility today.

I say possibility but the most likely scenario is more downside strength like we saw occuring on Tuesday.

WATCH FOR: BreakOut of Hour One pivot with the TRIN above 1.10 and NAZ not showing much strength above +10. Short this scenario.

If we get a stronger Nasdaq (NAZ) Up +15 or more with lower TRIN then be ready to see the market breakout 6 points or so above the early Hour One high.

If either of these scenarios is a bit sketchy then today is actually a good day to stand aside as the day to day sequencing pattern in right in a closing sequence. IE: market could go either way and we saw evidence of how this manifests on the closing half hour Tuesday when we are at the end of the sequence.

Value Area: 1,117.00 - 1,122.00
Trade below 1117.00 will continue the Bear pattern and we should see the market press lower. With yesterdays low of 1112.50 coming in as we had mentioned on the Live Service on Tuesday this number now becomes very important support.

Below that is 1111.00 and then 1109.00 but first we need to see if they are going to rally and hold up today. Today is a bit mysterious whereas Tuesday I was very clear about the Bear Market Force being prominent for the day.

Buy Pivot Target: 1,115.00 - 1,116.00
No direct trade at this pivot but watch this area for support on an early lower move. Compare to the Hour One and look for a move here to correlate with the Hour One BreakDown low. For today that could be a final buy move up if the High 5 are not mega bearish.

Would prefer to Sell Rallies today.

Sell Pivot Target: 1,125.00 - 1,124.00
Watch for trade up here to sell off mid session. 1129.25 is the +4.25 stop/pivot and they should stall up there so we could look for a Trailblazer formation up to that price AFTER the B/O IF that is the first Hour One pivot to occur.

10 Day "Pit Bull" Moving Average: 1,105.00
We are going to look to keep buying drops above this number on strong pullbacks off of rallies.

Sure, we will hit the rallies but want to maintain the Buy drops mentality when they get pushed lower.

Pro Trader's Action
Overall I want to try and stay on the Sell Side of RALLIES today as the saftest bet.

Watch out for a BreakOut Buy setup that is really clear. Symptom is a market that hits the BreakOut, sells off some, comes back to B/O and keeps pushing higher without hardly any sell offs from new highs. Hanging up at highs too is a clear symptom that they are going higher. Often very hard to see these setups occuring.

An early drop lower to the 1115.00 area is questionable and could Sell off under the B/D like Tuesday only keep going lower IF the High 5 are Bear Ugly.

Be willing to stand aside today if you are not clear.

BE SURE TO JOIN US FOR A FREE TRIAL ON OUR INTRADAY LIVE UPDATE SERVICE. We are up 40 points in just 26 trading sessions. Call (800) 806-4801 to talk with one of our friendly associates there.

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Look forward to seeing you in the action. Mohan