Wednesday, August 18, 2010

Looking for Direction

As I said yesterday at the close, I didn't feel confident about taking longs or shorts based on where the market closed. It looks like the rest of the market participants feel the same way as we have just been grinding up and down in a tight range all morning. So scalping has been the way to go. No major news and really no catalyst that I can see that will motivate a market move. I am still slightly bullish as I would like to see a retest of the 1098 level. If we can move above 1090 on the ES we should then revisit 1093 and if we break 1093, then we should get to see a test of 1098. On the downside, if we break down again to today's lows below 1084, we could see a wave of selling come in with a likely move to fill the gap from 8/16 between 1075 and 1078.

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