'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Thursday, February 23, 2012

The market made an early reversal when it drops in the open.

The bulls are so determined to overcome the bears overwhelming pressure to bring down the market.

Alas, whenever they bring down the market, the bulls are always ready to counter.

Like in today's market as shown from the chart, you can see the bulls determination to react forcefully  whatever the bears are trying to bring in the table.

Two trade setups are viable today, one when it made a reversal at around 10:00 am. ET.

The other when it consolidates at the range 12960 level.

If you are basing on a shorter time frame say 1-min. chart, it formed a cup with a handle pattern.