Thursday, December 16, 2010


Here is a 30 minute bar chart showing day session e-mini trading for the past two weeks. As you know I think the market is building a top below 1250 resistance. When it is complete I expect a break of 50-75 points.

However I think there will be a couple of short term buying opportunities while this top is being built. The first one is upon us. The early November top in the December '10 contract was 1224.75 (red dash line) and I think this level will prove to be support. The last reaction was nearly 18 points measured by 24 hour trading and a reaction of that size now would end also at 1225 (blue dash rectangles). I have drawn a green dash trend channel on this chart. Yesterday's low occurred right on the lower channel line but I am guessing that the market will drop a little more into the green oval target zone before this reaction ends.

The next upswing should carry the ES to 1250 or so. From there I think another 20 point drop will develop within the context of the top building process.


Bill said...

Unbelievable! i mean how you called the low this morning and subsequent bounce. You were sure resistance would not be broken and the market would move back up. Again incredible, hard to understand how you are able to do this with such confidence and precision.

Nav said...

And always right...Come &join carlrealtime and see how he develops the moves in ES_F..So Accurate !
Senior trader(my friend's husband)is there from a leading Investment Bank.
He saw my trades and he was stunned then I gave him the source(carlrealtime).
Thank You,Sir!