Continue to anticipate the formation of a market top. Note that there has been some great earnings news, by AAPL and IBM in particular yesterday, yet the strength seems to be waining in the markets. This is typical (ahead of a potential market reversal) given the fact that the market is already over-extended.
Levels to watch on the ES:
Resistance above at 1295.50-1296.50, 1300-1301
Support below at 1290-1291, 1286, 1276, 1269
Picking a top is never easy. Watch the market frustrate the bears by making yet another new high before the official top is in. Expect some choppy action in a 20-30 point range that will form the topping pattern. Expect a 50-80 point correction from the top which will be followed by a move even higher in the markets, perhaps to 1400 ES.
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Long ES at 1286.50
ReplyDeleteCovered ES for 3.5 point loss. Looking at 1276 as potential long entry
ReplyDeleteLong ES 1276
ReplyDeleteWanting this to rally back up into the close now or I will bail on this trade
ReplyDeletePutting in Break Even stop, if it trades back to 1276, I am out
ReplyDeleteSell ES at 1278 for 2 points, Looking to get long again
ReplyDelete