Tuesday, September 25, 2007

Plan for Wednesday Sept 26, 2007


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


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

NR5 day.

Yesterday it was sell at resistance, buy back at support.
Today it was buy at support, sell at resistance.
Good to see that my S/R levels are working.

SPY behaviour is starting to align with ES once again, but I will use the ES chart as it better reflects the S/R levels for the futures market.

Volatility has dried up ever since the FOMC breakout. The 5day ATR is just over 16 points, but in reality, the intraday range has been more like 10points - at best. We should be due for a range expansion day.
The resistance zone @1530-1534 could become support tomorrow if we get a breakout to the upside, or stay above the key level of 1530.
If we gap above resistance tomorrow, then I will look for a gap fill play.
Otherwise, if the narrow range, low volatility theme persists for tomorrow, then it will continue to be sell resistance, buy support.

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