Market Finishes the Day on Consistent Buying Off the 1061.75 Low

Turns out that we did indeed see support hold today in the low 1060s, it just happened very methodically. I expected what took the entire day to play out, to happen perhaps in the first hour of trading. The fact that we didn't see the low come in until noon led me to believe that we would probably see a retest of the low on the first up-tick into resistance. That didn't happen as the market churned upward into the close. I had a short on from 1066.50 that went against me for the entire afternoon. Read my comments in the previous post to see how I dealt with it and managed to even come out with a profit. I would have liked to have faired better, but I am happy under the circumstances that I didn't lose money.

So what does today's close mean? Well there is certainly nothing positive about it. The market tried on numerous occasions to get back above 1071.50, but it couldn't do it. The fact that resistance held there shows that there was no lack of supply. I remain biased to the short side and fully expect a retest of the low 1060s. We'll see how the futures trade on Sunday evening to gain some more insight into how the market will open on Monday. If the market Gaps up on Monday, I will reconsider my short bias. Until then, enjoy the weekend.

My Bias Turning Negative

I will be looking to sell the upticks here now. Will sell 1065-1066 if we get back up there..

And We Pierced The Low by One Tick at $1063.25

If you got long, you're in fine shape, should pay out at least a little, though I wouldn't defend the position. I have not gone long yet. I will post in the comments if I decide to take a long entry.

Markets Have Fallen, Will They Get Back Up?

The S&P Futures (ES) traded down almost to the base of my 1063-1066 buy range in the overnight session and is now trading up over 1068, which is still down a half percent since yesterday's close.

What to look at after the open?
1: We'll have to think about the possibility of filling the gap after the market opens which would be between 1073-1075
2: We could possibly run down and officially fill the gap from 7/21 which would mean we would revisit the overnight lows down in the 1063s. We could make slightly lower lows down to 1060-1061. This will be an area to watch. We could see a reversal from here to move up and fill this morning's gap at 1073-1075.
3: We test the overnight lows and break down through them.
Support comes in below at 1053-1055, then at 1041-1043

We'll have to watch and see if the market does hold support down in the 60s. I think there is a good possibility that support does hold. In any case, I do not feel comfortable taking a position until we reach the lower 1060s (potential long) or if we tick back up to 1073 (potential short)...