Friday saw the highest close on the S&P 500 Cash Index since 6/25/2008. This morning the markets appear to be following through on the bullish sentiment as each of the indexes are set to gap up. European markets also higher with the German DAX at new 3 year high.
So the tone this morning is definitely bullish ahead of the open. The key is to see if buying is sustained after the opening bell. Market is attempting to shrug off any notion that it is setting up for a reversal. I can't ignore price action and if this gap-up is followed by continued buying, I will have to remove my short bias (at least for the moment). We'll see how this morning trades and where the market closes before jumping to any conclusions, but at the moment, you can't ignore the strength.
To help the bears cause, the market will have to reject the new highs and trade back down below 1306 and back into the 1290s this morning...
Levels to watch today on the ES:
Resistance above at: 1313-1314, 1317-1318, 1321-1322
Support below at: 1305-1306, 1301, 1295-1296, 1288-1290, 1283-1284
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No sign of weakness at all this morning, bulls completely in control thus far. 1322-1323 is a likely high target today on the ES. So, some short scalp opportunities there, otherwise I like buying the dips in anticipation of trading to 1322.
ReplyDeleteMorning Verde - SPX 1313 broken - Will be interesting to see if they now use it as support going forward... Technical trading from the short side has totally gone out the window with this Fed manipulation... Only people buying up here are the "ones in the know" and the guessers...Good luck...
ReplyDeleteVis
No confirmation yet on a move above 1313, though the bullish sentiment is looking real so far. I am neutral for the moment. I will wait for a consecutive daily close higher, before truly having a long bias. At the same time, I won't favor the short side again until we get a daily close below 1306 on the ES...
ReplyDeleteLong ES at 1315.25 Looking for retest of today's high...
ReplyDeleteNo defense below 1313.50
ReplyDeleteStill Holding
ReplyDeleteCould consider scratching the trade on the retrace to 1315, but will continue to hold...
ReplyDeleteTarget 1318.25
ReplyDeleteSold ES at 1316.25
ReplyDeleteMarket shows bulls in control. We'll need a continuation tomorrow and a higher high to get confirmation...
ReplyDeleteThe market has shown the Bulls in control since September 2010... This is nothing new...
ReplyDelete:)
ReplyDeleteBut keep in mind that comments are intra-day in time-frame unless otherwise noted. Since last week's three days of consolidation, bulls have only today re-confirmed control. Although there may be strong odds that a continuation to the upside is now in progress, it has not been confirmed. A daily close above today's high will provide "technical" confirmation.