Markets continue to climb since bouncing off the lows on Wednesday of last week. ES is now trading above what I called "the critical 1304-1305 level". Because of this I have switched my overall market bias from bearish to neutral and consider that the lows of this correction are likely in. At the same time, the ES will need to remain above 1300 today to confirm this. There remains significant resistance overhead.
Levels to watch today on the ES:
Resistance above at 1312-1313, 1317-1318
Support below at 1305-1306, 1294-1295, 1289-1290
In the News:
GDP numbers were released this morning coming in at 3.1%, in-line with expectations.
In Japan, reports suggest that one of the Fukushima reactor cores may be cracked and leaking radiation, and the recommended evacuation zone was widened.
Debt crisis in Europe making headlines again. Standard & Poors downgraded Portugal two notches to BBB and reports show that Portugal may need a $99-113 billion dollar bailout.
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Probably going to see 1317-1318 ES today. I like buying the dips going forward intra-day.
ReplyDeleteWill consider long at 1308-1309. Will reconsider long bias if ES trades below 1308
ReplyDeleteWell, at this point I don't like longs if we move back below 1309. Dull day, low volume. Good trade if you managed to buy between 1309 and 1310... I didn't catch that long, nothing for me to do here now...
ReplyDeleteAfter seeing new highs in the first two hours of trading, the market failed to see a follow-thru bid. For a Friday with no volume, that surprised me. It could be a sign of weakness. In any case, I remain neutral. Markets are a bit over bought, we'll see how trade opens next week...
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