Today is why we don’t just blindly jump in.

Well today I to thought that since we bounced off $1266 on the S&P that we were going to continue higher and likely breakout of my resistance and buy lines. On all 3 charts the down trend line has been broken and that means we are 1/3 of the way to re-entering the markets. Today we also saw something that makes me pause with suspicion. You see all day we were cruising uphill and price was looking like we were going to be breaking out. Then the bottom fell out. We closed almost where we opened. This is why we set rules and we wait for confirmation that price is headed in our direction.

So looking at the daily charts below there is not much damage to the rising prices, but it did cast doubt. So I wait for my other indicators to fall and then I will enter.