Tuesday, August 24, 2010

Low in place

The ES has rallied above the 1051 level, as far as 1056.50 thus far, and has traded above 1051 for more than 30 minutes. This action leads me to believe that today's low is in place at 1044. Moreover, 1044 in all probability is the low of the drop from 1127.

If this is the correct read then today's day session midpoint (at 1050.25 thus far) will act as support for the rest of the session. Moreover I expect to see a close today at or above the midpoint of the day session range.

4 comments:

extrader said...

Carl,

I agree with you and think the low is in for the day and prolly for this leg down.... Now i just need to find a re-entry to get long on a pullback!

ex

extrader said...

I see 1061 as resistance for today and if hurdle that, 1065!

ex

Boo said...

Agreed. This morning's plunge. and retest of the 1040-50 range had the look of a terminal flushout. Small caps are leading the way higher on good volume. We should have a multi day pop from here where i expect some overhead supply at the 1070 range.
Cheers

Naveedah said...

Not a lot of high conviction buying, but if the tape creeps higher like this into the close, there could be some follow-on covering/buying. A lot of the most intense selling pressure has dried up for the most part.