Plan for Friday, Sept 7, 2007

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ES Resistance at 1481-1485, 1496-1500
ES support @1467-1470, 1436-1439

VA= 1479 +/- 3pts.

Open gap @1490
Open gap @1461
Open gap @1437

NR7 day today, and also the narrowest range in the past 31 trading days.



In the bullish scenario, go long on any move above 1484 that is sustained for at least 15min. or more.

In the bearish scenario, go short on any move below 1467 that is sustained for at least 15min. or more.

The way that price action has been chopping and creeping upwards in the past two sessions suggest the odds might favour a break to the upside. Watching the OR in comparison to the overnight range will be important for tomorrow's session to ascertain direction for the day.


Gold


Gold is looking good on a pullback down to the 699 area. Gaps do not seem to have as big an effect on gold as it does for ES. Playing the pullback down to support might not be a bad idea either. I will check to see if the downtrend line remains valid tomorrow.