Avoid The Magic Show

Expectations for relief from the ECB -- a rate cut -- evidently drove the thinly traded overnight futures session to lofty heights, then reality struck when Mario Draghi showed his true central banker colors and delivered the same old thing. 

More talk.  Rates on hold.  More talk.  Futures fell 10 points from their pumped-up highs.

Watch the real market today -- the S&P cash.  That will tell you all you need to know.  By all means trade the ETFs, but charting them will lead to frustration unless you trade price, which is the S&P cash.  ETFs are imperfect structures designed to mimic price.  When price gets to your target, then make your move with whatever ETF strikes your fancy.

If you trade the e-mini, great.  I do, but I scalp with it, against my positions, and I do not use it for charting, just levels.  The S&P cash, which does not trade and can't be pushed around except by pushing around 500 stocks simultaneously, is the only chart I use.

Watch 1298.90.  Watch 1277.64.  Above the former would suggest a more complex upward correction, possibly to 1334, while below the latter would suggest more downside, possibly toward the previously cited 1254-1259 area, or lower.

Price achieved the higher 38% Fib level (1287) yesterday but did so on choppy trade and light volume.  It can go higher.  But it's how it does it that's important. 

There is a lot of hope in the market that furry rabbits will appear from nowhere, given to us by nice old men from central banks.  The nice old men are perverts.  Avoid the magic show, the smoke and mirrors, and their tricks of illusion.

Focus on price.