But when I look at the market you're over [the 18-week average], that means there's a bias in the market, as long as it stays over the 18-week average of closes, as I have a bullish bias and that's one of the filters I look at...and I then come on and I can look at a chart and say, okay, what do we have? I got lucky. I correctly predicted that this peak was going to happen. It was right over a Bollinger Band – I didn't think it would hold up.
And when we came down here, what I looked for – I said, 'Well, if, that ends up because you had bounced so much as the top and the bottom, maybe there's a 50% correction is where the market's going to end up as it tries to figure out what to do next.'
The bigger story: markets like to fight at the 18-day average of closes. That's very important because on a daily chart, the bias is still up. So if you were to get under $2038.30 and close under that number especially, you'd have a pattern of lower highs and lower lows and have your first bearish pattern in the market.
Conversely, you've had a nice rally, you've pulled back and now the market's got approved to be bullish that it can hold here, stay above that 18-day average, and build on that if it wants to go higher.
About the author
LINN & Associates
Over the past 35-years Ira Epstein has developed a reputation for providing clients with easy to use technology and teaching good old fashioned trading know-how. A number of our brokers have over 30-years trading experience. No matter how technology changes the methods of entering orders, there's no replacement for having "been there and done that before". It's the blend of services that brings things together.
Be it education, market information or trading platforms, we provide solutions.
Ira began in the futures markets in 1969. Over the years he worked his way up, starting from the ground up as a "floor runner" culminating with his becoming a Floor Trader. In the mid 1970s Ira decided to make a career shift within the industry to develop both retail and commercial based clientele. His customer base grew to the point whereby in 1984 he founded "Ira Epstein & Company", a trading firm specializing in retail, commercial and self-directed discount futures trading. Along the way Ira became a leader in trading technology out of necessity, due to increased small lot trade volume. He was among the first to embrace the Internet, which as you know has dramatically changed both the way information is delivered and how trading takes place today.
One of the ways Ira, along with his brokers showcase their talents is through e-mails of market information and Ira's "Futures Videos", which can be viewed on our website, through Market Center, Linn-IraChart Software and on YouTube.