Monday, October 08, 2007

Plan for Turnaround Tuesday, Oct 9, 2007

Tech is leading the charge in this latest run-up, but force of habit still leads me to trade the S&P500 eMini Futures market.

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ES Resistance @1571-1575
ES support @1559-1562, 1542-1546, 1529-1534, 1516-1520

Weekly Pivot = 1559.75 (touched today)

Open gap @1571 (10/5)
Open gap @1552.5 (10/4)

I've left out all of the open gaps from September, since it is unlikely that they will be filled, and therefore, the information is old and no longer useful.

ES is going to have to break above the congestion @1566-1568 in order to have any shot at making new highs for the week. If it can sustain a move above 1568, I will look for a gap fill play.

But on the flip side, 1560 has held up as support twice now, and there's going to have to be more volume than the anemic display put in today in order to break below 1560. If it can sustain a move below 1560, I will look for a gap fill play.

If volume is lacking, then mean reversion plays will become the order of the day, and the usual scalping will be my plan (but this time targets will be the less ambitious 1 or 2points at a time).

I'm not anticipating any trades in these other two markets, but will be monitoring them tonight, and will set my alerts to appropriate levels.



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