Wednesday, August 22, 2007

Plan for Thursday, Aug. 23, 2007

"Don't get overly excited about winning trades, and don't get overly despondent about losing trades."
- Tom Bierovic

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ES Resistance at 1479-1484
ES support @1433-1436, 1456-1460

Open gap @1450.5

Yesterday's NR5 day resulted in a gap up today which never filled. That is a bullish sign.
Today's action is technically considered an FTD to last thursday's rally out of the hole. Of course, volume in SPY today was just barely above yesterday's volume, so the FTD was not that convincing. But the ascending triangle was resolved to the upside, and as AlphaTrends has noted, price is what pays.

So, the past 4 days have shown some constructive price action led by the buyers. There has been some quiet accumulation by the bulls in the last hour of the past 4 sessions. I'm surprised that the sellers have not challenged any of this current run-up.
ES is up +10 in the overnight session (thanks to CFC's announcement of a liquidity injection by BAC), so I will be looking to play the attempt to fill the likely gap up for tomorrow's session. Oh yeah, and the other goal is to avoid any impulse trades.

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