Tuesday, June 02, 2009

Update at 1 pm

Here is a five minute bar chart of e-mini day session trading. I still think my range estimate (blue rectangle) of 935-955 is a good one. The market has found support near 939 which is the midpoint of the day session range for the past two days thus far (red dashed line).

You can see that after yesterday's first hour of trading the market has hovered near the January 6 top at 942.75. I think this is bullish action. Why? Well, the last time the market traded at this level, back in January, sellers came out in droves. But this time no sellers have showed up, at least thus far. This bodes well for continuation upward toward the 979 midpoint resistance level.

Another positive fact about this chart is that the buying climax we saw this morning (red arrows) led only to a modest reaction, at least thus far. As I have often said, what the market doesn't do in certain circumstances often conveys more information than what it does do.


Larry said...


Your bullish thesis leaves out the fact that financials are not participating. Why are you not factoring that into the equation? Thanks in advance for your thoughts.

KBSC said...

Larry.....sector rotation.

DL said...

Weakness in financials and the failure of the overall market to react to that weakness, supports Carl's bullish thesis. It shows that the market is digesting big gains rather well. We might get some consolidation towards the end of the day but at this point i'd rather be long than short.