Thursday, October 14, 2010

Thursday October 14th Review and Analysis.....

Support and Resistance levels worked well today, our bull/bear line in the sand worked very well.

We spent much time above the 1174.75 line in the sand in the overnight session, and was even able to hold that level after the dissapointing UE claims number. But shortly after 9am we broke through to the downside down to pre market support level for a small pause, but lack of buyers called for even lower prices, we then tested the initial support level where we got an improved bounce back into the 1174.75 line in the sand.

The market became bracketed between initial support and the bull/bear line in the sand making for some decent two way trading. However we broke to the downside shortly after the European close as the finincial sector weakness early on brought the broader market down with it.

We fell to the support zone and got another bounce in that area back up to the initial support level. What was support became resistance and the market made one more break to the downside to make one more/last lower low.

Now there was no real support at that level but if you take yesterdays day session range which was 12pts, you take that 12pt range and subtract it from the 1175.50 high you get 1163.50 which is very close to the 1162.50 which eventually became the low for the day.

The maket going into the close and in anticipation of the Google earnings release broke back inside the initial balance and rallied back to the high extreme area of the day showing more conviction by the bulls.

We have heavy acceptance in the 1168 area today, overnight and pre-market support and resistance levels will be 1177 - 1178.50 on the upside, 1168 - 1166 to the downside.

1180 - 1181 could be tested in the overnight session as Google as I type this is trading some $40-50 up already and the Nasdaq futures have made a new 2010 high already.

I am going to use my bull/bear line in the sand as 1181, bullish above and bearish below.

Thursday Oct 14th Support and Resistance levels.....

The Market has held the 1174.75 previous weekly high most of the overnight session with USD weakeness, the broader markets show risk seeking is continuing, but this can change once the cash open begins. I am going to use the 1174.75 high as my bull/bear line in the sand for today. I do believe a break back down to re-test the 1127 (2009 high) will occur in the near future, but so far no clear cut signs of that happening yet.

Econ News from UE Claims to PPI coming out at 8:30am, Nat Gas report out @ 10:30am, trade carefully!

Wednesday, October 13, 2010

Wednesday October 13th Review and Analysis...

The market opened up with a gap up out of balance and out of yesterday's range completely, setting up an imbalance from the start.

We had an Open - Test - Drive open with price pulling back to test the high of yesterday at 1169. Sellers unable to push price below that price level coupled with price then breaking the overnight or Globex highs signaled a trend day in the making.

The key levels worked well for both short and long trade facilitation, but given the market structure today, shorts were very risky.

We had a 12 point day session range with more volume generated today than yesterday, with heavy acceptance in the 1178 area.

For the overnight, I am using that 1178-1180 area as initial resistance with 1181 being the today's high. I am using the 1172 -1173 level as initial support. With 1174.75 being the last significant top level.

1183 - 1184 above as resistance, the same 1169 -1170 level can be used as support along with 1164 - 1165.

More to come tomorrow....

Sunday, October 3, 2010

Monday September 27th 2010 - No news

Globex Range 7.75 pts

Market opens below Globex midpoint and takes out globex low

RTH range is 8 pts with a 5pt Initial Balance with no news to move to warranty any movement with conviction. Market closed near its lows below midpoint and VWAP with a negative TPO count, sets up for continued weakness into overnight-am session.

Wednesday, September 8th - No news Obama speaking at 2pm

Globex Range 10.50pts

Market opens above the midpoint of Globex range taking out Globex high with range extension.

RTH range is 10.75 pts with an 8 pt Initial Balance - high got taken out with range extension

Tuesday September 7th 2010 - No news

Globex Range 12.25 pts
Market opened below midpoint of Globex range, took out Globex low.
10pt RTH range with 8pt Initial Balance, minor range extension to the downside closing below midpoint and VWAP.