Markets got another boost in pre-market trading this morning when non-farm payrolls came in at 151,000, well above consensus estimates. Private payrolls also increased by 159,000, their biggest gain since April. Markets extended their gains above yesterday's highs. Dollar also spiked this morning on the employment news. It is pertinent to note that the dollar index retested previous support yesterday piercing its previous low from 11/25/09. If this support holds, we could see a potential short-term top in equities today. I will be feeling more confident in taking some short trades today especially if the ES trades up to 1128. There is some nice profit potential with any shorts off that level.
Levels to watch on the ES:
Resistance at 1222-1224, 1227-1228
Support at 1217-1218, 1211.50-1212.50, 1204-1206, 1197-1198
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You can see my levels have played nicely so far, 1224 proved to be good resistance as the ES sold off that level 7 points right down to the 1217-1218 support level (touched 1217.25) and is now trading 2 points up off that...
ReplyDeletePending Home Sales are out in 6 minutes. Lets see if the news keeps turning out positive. We should get a brief move in concert with this news...
ReplyDeleteSeptember Pending Home Sales -1.8% vs +2.5%
ReplyDeleteWe should see some more selling come in...
Short ES 1219.50
ReplyDeleteJust to clarify, the pending home sales new is not a major market moving event. We saw some initial buying off the negative news, so my thought process here is to fade that move off the VWAP... looking for at least 2 points here
ReplyDeleteCovered at 1217.50 for 2 points
ReplyDelete