I had been expecting to get a little selling in the morning, at least maybe half a gap fill, but it didn't happen. We have pierced my 1180 resistance level to 1181 and we have already achieved a daily range consistent with the current average. It is possible that the high is in, but in reality, there are no signs yet that we won't just continue to churn up into the close. If an opportunity to short this market presents itself, I will post it here. If you already shorted in the 1179 to 1181 range, its a good trade, but be careful in this bullish environment, don't defend it...
If the markets don't turn down from here, 1184 on the ES is the next likely level to find resistance into the close...
Wednesday, October 13, 2010
Gapping Up
Bullish sentiment continues as the market is bid up more in the overnight session.
If the ES can continue to trade above 1171, watch for potential range extension up to 1178-1180. It is unlikely that we will see trades price the ES higher than that today, but looking ahead to tomorrow, the next level to watch is 1189-1190.
On the other hand, if the ES breaks down below 1171, watch for potential gap fill to 1165. Next level below that is 1160.
Market very bullish. I haven't forgotten about considerations to begin a scale-in swing short position, but there are not yet any signs to begin that play.
If the ES can continue to trade above 1171, watch for potential range extension up to 1178-1180. It is unlikely that we will see trades price the ES higher than that today, but looking ahead to tomorrow, the next level to watch is 1189-1190.
On the other hand, if the ES breaks down below 1171, watch for potential gap fill to 1165. Next level below that is 1160.
Market very bullish. I haven't forgotten about considerations to begin a scale-in swing short position, but there are not yet any signs to begin that play.
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