Today's morning downward movement towards 1900 and subsequent bounce rally was expected.
Yesterday's S&P500 Hourly Chart

As we predicted yesterday, the B-wave should go down towards the 1900 region before resuming uptrend. Today's low was at 1899. We initiated our trade of the week for next week near those lows at 1903/1904
Today's S&P500 Hourly Chart


Zooming in to S&P500 5min Chart

My S&P 500 2016 Prediction So Far On Track:
At the end of 2015, I posted this blog entry: S&P500 2015 Year in Review and 2016 Outlook - which included the following chart prediction:

Well, guess what - today about 2 months later - the weekly chart looks like we got that yellow wave 1 down and are potentially in a wave 2 retrace:

I thought we might break 1800 with wave 1 - but it's also possible that it holds as support. Either way, we did get what looks like a wave 1 down. At this point, either the wave 1 down is followed by the recent wave 2 rally -- or that wave 1 down was actually a wave C down and we will continue to rally beyond where we expect it to go - potentially to new highs. I am open to both possibilities and it really depends on how the pattern morphs on a daily basis.

 
S&P500 Overnight and Weekend Risk
 
Before I talk about today's topic of overnight and weekend risk --- particularly over 3 day weekends, i wanted to talk about what some of our subscribers have been bugging me about--the urge to get into a trade.
 
So as I'll discuss in a bit, this week we had a profitable max profit trade as our trade of the week. We promise 1 high probability trade each week and that trade made good money this week. We initiated the trade on Tuesday and it expired on Friday for maximum profit.
 
In fact, within 1 day, this trade reached 50% of max profit and within 2 days, it reached 90% of max profit.
 
Now, some of our subscribers are constantly bugging me -- where's the next trade? As if there's this constant need to be in a trade.
 
Well, let me clarify, this is podcast and service is all about LifeStyleTrading -- these trades are designed with the intent that you can put on the trade and carry on with your life --whether it's your day job  or something else -- and by Friday expiration, the hope is that you will collect your max profit. There's no guarantees it works out as planned - but that's the goal we aim for.
 
The goal is NOT to generate trade idea after trade idea after trade idea -- it's not about quantity -- it's about quality. Our goal is to help you generate a few thousand dollars per month with just 1 trade per week. Sometimes we might give bonus trades -- in fact, oftentimes we do more than 1 trade per week. But those are bonuses. 
 
Also, we care about high probability trades -- so we don't do large quantity of trades. We want to be able to put on the trade and relax. Now yes, many of our subscribers are day traders who are constantly in and out, in and out -- constantly looking for the next trade. But you don't have to be so neurotic to make money in the markets. Additionally, we also have a lot of subscribers who have day jobs -- so I want to make sure these people can realistically see my alerts, login to their account, and place the trade without having to constantly monitor it. I do the hard work so you don't have to.
 
It's about quality and consistency and lifestyle -- not watching every tick of the market and overtrading to the point that commissions and mistakes eat up your account. The focus here is on accuracy -- not quantity.
 
When I recommend a trade -- I go through this rigorous analysis and mental process before I send out these alerts. I want to know that the trade I recommend can potentially be held all the way through expiration so people who can put on the trade and sit back and relax. Now it doesn't always work out that way -- sometimes we need to adjust the strikes or expiration date based on market movement -- but that's the initial intention.