Plan for Thursday, Sept 27, 2007

Summary

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ES Resistance @1541-1544, 1550-1553
ES support @1530-1534, 1516-1520, 1500-1505, 1485-1490

VAH=1539
POC=1537
VAL=1533

Open gap @1529 (9/25)
Open gap @1490 (9/17)
Open gap @1467 (9/10)
Open gap @1450 (8/28)


This recent consolidation has been captured well enough by the S/R levels that I have identified.
Markets gapped up yesterday, and attempted to, but never completely filled the gap. Looks like the market is gapping up today, and if this recent pattern persists, this gap up probably won't get filled either. In my opinion, an unfilled gap up is bullish, regardless of whether the gap up occurred during consolidation or otherwise.

The market might break above the 1541-1544 resistance zone today. In that case, I will look for a clear trend and sustained move above 1543, and buy the break once I see that clearly happening.
Otherwise, we will be back to the same old consolidation between 1540 and 1530. In that case, I would sell the break below 1540.