Markets saw a bid yesterday afternoon following positive earnings releases from IBM, INTC, VMW, YHOO, JNPR among others. Interesting to see that IBM is actually down now while the rest of the market is up considerably.
European markets also seeing a huge bid with the DAX leading the way up with a 2.8% gain.
ES traded into solid resistance between 1328-1330 this morning, up more than 20 points from yesterday's close. A fiercely bullish move. Normally I would be very confident defending a short above 1328, but with such an aggressive move up last night, momentum suggests we will see continued buying. Such large gap ups are often followed by a continuation higher.
Outlook for today:
Look for a potential sell-off back down to at least 1322 and as low as 1318. From that low, look for a rally back up to the current high of 1328.75. There is a good chance we make a new high from there which will be followed by narrow consolidation trading for the remainder of the day. Thats a possible scenario and that is one way I will be looking to play this market today.
Levels to watch today on the ES:
Resistance above at 1328-1330, 1332, 1334
Support below at 1321-1322, 1318-1319
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The fact that no buying has come into the market since this morning's highs suggests that we will see some further movement to the down-side. This will create a nice buying opportunity. That buying opp would most likely be at either 1315 or 1306. I will comment as I see opportunities present themselves...
ReplyDeleteThe alternative view is that there is a nice bull flag forming on the S&P cash index suggesting a break-out to the upside is nigh which would bring the market to new highs.
In both cases I like the long side, the decision is when to get long...
Apple prelim earnings $6.40 vs $5.37... markets rise as futures open for evening session
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