Wednesday, September 19, 2007

Plan for Thursday, Sept 20, 2007


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ES Resistance @1545-1550
ES support @1505-1509, 1485-1489

POC=1544.25 (2-day up trend)
Weekly Pivot = 1485.25 (touched on Monday)

Open gap @1533 (9/19)
Open gap @1490 (9/17)
Open gap @1467 (9/10)
Open gap @1450 (8/28)

Now that we have FOMC out of the way, the path is clear for new contract highs.

First question is whether we will test the breakout from Tuesday. We had a selloff today which still couldn't fill the gap, so the sellers are not really strong here, at least not yet.
In looking at the charts, I have a bit of a bearish bias for tomorrow. I will look to sell resistance and also look for a gap fill play, and if there is further downside, I will re-enter on a pullback.
But just in case the bulls are strong and resilient, I will watch the 1533 level. If that level is not touched, and there is a push for the mid 1540's, then I will flip to a bullish bias and start looking for long plays.

I have also started studying British Pound Futures. It looks like one of the more interesting Forex Futures markets, and certainly one of the more volatile markets. I might start adding some support resistance numbers for Cable, we'll have to see how things go.

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