Fake Outs Galore. Are They Over?

True to character, yesterday's b-wave down had more than enough fake-outs to go around on both sides.

It faked-out the bulls, it violated 1150, then it faked-out the bears.

I know I said that I'd post another chart "if things changed" yesterday but I couldn't. If you want more real-time information, you will need to follow me on Twitter.

These blog posts are more about getting my thoughts together before the trading day (something I highly recommend other traders try).

Many times -- and you must be prepared for this as a trader (readers, too) -- the day does not have anything to do with the pre-game scenario outlined here. You must be prepared to be wrong more than you are right. And you must be prepared ahead of time to do the right thing when you are wrong.

For today, it looks like the S&P cash will open with a deep retracement. That is to be expected. What is not expected is price to dip below 1139.93. That will call into question my entire scenario and much of the positions I took yesterday.

However, it could be the final and ultimate fake-out from this b-wave. We'll just have to wait and see.

I'm prepared to be wrong, but I don't have to like it.