Midday Market Thoughts- Bullish For Rest of Day

HedgeFundLIVE.com — It is approximately 2p right now and the market today has proven to be strong.  This morning the S&P E Minis opened on the R4 buy signal.  Historically, when the market opens on the R4 buy signal, it closes on the R4 buy signal.  I started informally tracking several stats on the Spooz since early October 2010.  Since then, the Spooz have opened on the R4 buy signal 17 times, excluding today.  Of these 17 times, below outlines which signal the market closed on:

R4 Buy Close: 11
R3 Sell Close: 5
S3 Buy Close: 1
S4 Sell Close: 0

The odds definitely favour an R4 close today.  Now, for those unfamiliar with pivot trading, an R4 buy close does not necessarily mean the market will close above R4.  While an above R4 close qualifies as a R4 buy signal, a close between R3 and R4 also qualifies as a R4 buy close given that we do not tick below R3 for the rest of the day.  

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