Friday, April 03, 2009

Today's range

Here is a five minute chart of today's e-mini trading. I got long one unit after the market approached the bottom of my range estimate at 825 (blue line) on what was shaping up as a minor volume climax bar (red arrows). The market has dropped about 7 points from its open today. It should not drop as much as 10 points from the open if it is going to rally back above 835 later today.

If the 825 level doesn't provide support then I shall be expecting a drop of about 10 more points to 815-17. This would make the move down from this morning's high about 28 points, the length of the biggest reaction on the way up from the low earlier this week at 775.50.

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