Where do we got from here?

Pre-market futures are up over a percent as I write this early Wednesday morning indicating that we may be in for a trend day if things hold up.

Yesterday on SPY the bulls held their ground and were able to pop price up above the moving averages with a little hammer type doji candle. As I've said previously, if the bulls can continue to push things up (and it looks like they might with this morning's action) we may see a rather large push in that direction as the bears get out of the way and as bearish stops are taken out just above the moving averages.

I was extremely bearish going into this week thinking that we would see a large move down possibly testing the March lows by Fall. However, we can't allow our biases to overtake the reality of the market. We aren't moving down and it would be foolish to start taking short positions here because the market "has to go down". Price is telling us (at least in the short term time frame) that price is going up whether we think it should or not.

The DIA is a little less clear as we have a doji candle right at the compressed moving averages. A drop below the 20, 50 and 200 moving averages would be extremely bearish and price would likely drop to the next area of supprt around 78.00.

Adam Hewison of The MarketClub discusses the DOW today in a free video titled Important Dow update, July 14th. In the video Adam shows how to use a Fibonacci retracement tool to determine where we are at in the swings of the market.

I've found The MarketClub's videos to be extremely helpful in getting a "bigger picture" idea of what's going on in the markets.

He covers several markets that I don't follow (ie commodities) which helps me develop focus for my intraday trades. I think it's very important to have several sources of information to create an edge for your trading and I've been very impressed with what The MarketClub offers. Check it out.