Tuesday, September 18, 2007

Plan for Wednesday, Sep.19, 2007

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ES Resistance @1540
ES support @1505-1509, 1485-1489

POC=1501 (no trend)
Weekly Pivot = 1485.25 (touched on Monday)

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

The last time that the markets broke out on an FOMC day was back near the end of March/07. Here is what that session looked like:

And here is what happened the next day after that massive, sentiment changing breakout:

Quite anti-climactic if I do say so myself. When the market goes through a massive, wide ranging, breakout day like today, it tends to require a couple days to rest and recover.

The real trend does not begin in earnest until after we get the FTD. And the FTD does not usually happen on the very next day.
Will history repeat itself? Who knows, but I know that I'm not going to expect much in tomorrow's action in any case. Probably a good day to stick to my scalping for 2 points at a time.

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