1290s resistance continues to provide profit opportunities. First test of the 1290s happened on Tuesday seeing a 10+ point move off the 1290 level. Next test came yesterday as the ES pushed into the mid 1290s in the early morning reversing downward to provide potential gains of 15+ points. Again last night the ES managed to move back up to 1295 and has now traded 15+ points lower.
As I stated previously, I didn't expect a straight move down off this key resistance, but that moves to the downside would be followed by reversals to the upside. So far this has been the case as the markets continue to consolidate. I expect the larger move down to begin next week and the highs may already be in. That being said, we should see a bounce again here (at 1280-1281 ES) following the selling of the news that the Federal Deficit has widened. JPM earnings fell in at .90c/share versus estimates of .92c/share. We'll see if the JPM conference call (in progress) has an impact. If we do not get a bounce here off the 1280 level, expect a move down to 1274-1275 next.
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I'm short ES at 1287. Holding over the weekend.
ReplyDeleteIts not yet confirmed, but it looks like the official downturn has begun.
I like shorts as long as the 1290 level holds. If it doesn't hold, I still like shorts, but this means ES may retest the 1295-1300 area.
I remain biased to the short-side
That was a bizarre move to end the day on such a strong note, not sure what the catalyst was (if any genuine catalyst).
ReplyDeleteI still like my short, though it seems everyone else who was short didn't want to hold their position over the weekend as there were lots of covered positions to finish out the last few minutes of trading.
We'll see what next week brings. Holiday on Monday though futures open on Sunday for an overnight session...
Sorry I didn't post here, but I covered my short for a 2 point loss, as I said in the first comment, a move above 1290 would suggest further highs and that is exactly what happened.
ReplyDeleteThere was potential to take 5+ points profit on the trade, but I was holding out for the chance at much more. The move above 1290 negated the opportunity.
On a side note, the 1300 level is holding up so far this morning as ES has now trading down more than 5 points (7+ points from the high). I did not get short by the way, even though the opportunity was certainly there...