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.
Friday, January 13, 2012
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