Although its been more than a week since my last post, my outlook has not changed, I remain bullish overall. We saw slightly lower lows into the end of last week, but the markets have since found support and are moving higher. If today's gap up holds and the ES closes higher, it will mark the largest two day move since Bernanke announced the open-ended purchase of mortgage backed securities over a month ago and would mark an inflection point off of the lower trend support of the up-channel dating back to the June 4th lows. This could be a signal that the next leg up has begun, a move that should bring the ES to at least 1500. We would need to see consecutive daily closes below 1420 on the ES to make me reconsider my long bias. For now, I continue to favor buying the dips.
Levels to watch today on the ES (Z Dec Contract):
Resistance above at: 1444-1446, 1449.50-1450.50, 1454-1455
Support below at: 1438.50-1439.50, 1434-1435, 1430-1431
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