Plan for Wednesday, Aug. 29, 2007

Summary

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ES Resistance at 1456-1460, 1480-1484
ES support @1433-1436, 1420-1425

Open gap @1469
Open gap @1483.5


Sellers could not break the support @1436, so I will look to buy tomorrow at support. Overnight session is starting to trend back up, so tomorrow's session will kind of depend upon how big the opening gap will be. I don't think we will close at 1460 tomorrow, so I will look for signs of a reversal.

The onus is on the bulls to prevent another rout. The sellers showed up in the past two days, drew the line in the sand and made their statement. Now it is time to see what kind of statement the bulls will make. How far up from 1436 we wind up will tell us a lot about the conviction of the buyers.