AI
Sunday, October 03, 2010 7:37:01 PM
Market Update (ES)
Last week ES traded in a narrow range, basically between the 1129.50 support area and resistance around 1148. The first chart up is the weekly interval, showing the advance out of the bullish wedge (outlined in yellow). The orange line is the neckline of the IHS formation, which we could pull back and test but at this point I'm doubting it. If we should pull back there is a gap to fill at 1105.75 to watch for support. It was a lot of work to get the price where it is so I really don't think it'll pull back that low at this point, but I've been wrong before. There's only a little more than a month for this administration to prop up the markets to improve investor sentiment so I expect that we'll begin moving higher with more vigor pretty soon.
Next up is a daily chart without moving averages just to clean things up a bit. Here you can see that we already tested the top side of the orange neckline so we'll likely not revisit it. The last 5 candles could be considered a flag, albeit a messy one, so maybe there'll be some news to give us a good pop at some point during the week.
The next chart is the same, just showing the moving averages and new trend line support started since the gap up three weeks ago. You can see that the space between the 10ma and 20ema is widening and the 20ema crossed over the 200ma last week as well. We're also about two weeks away from a golden cross of the 50ma over the 200ma which should get some hype.
As for eco numbers this week we have one on Tuesday but Thursday and Friday will be the big days. Maybe we'll get a retracement going into Tues or even Thursday and have a strong end of week. That's what I'll be watching for.
Last week ES traded in a narrow range, basically between the 1129.50 support area and resistance around 1148. The first chart up is the weekly interval, showing the advance out of the bullish wedge (outlined in yellow). The orange line is the neckline of the IHS formation, which we could pull back and test but at this point I'm doubting it. If we should pull back there is a gap to fill at 1105.75 to watch for support. It was a lot of work to get the price where it is so I really don't think it'll pull back that low at this point, but I've been wrong before. There's only a little more than a month for this administration to prop up the markets to improve investor sentiment so I expect that we'll begin moving higher with more vigor pretty soon.
Next up is a daily chart without moving averages just to clean things up a bit. Here you can see that we already tested the top side of the orange neckline so we'll likely not revisit it. The last 5 candles could be considered a flag, albeit a messy one, so maybe there'll be some news to give us a good pop at some point during the week.
The next chart is the same, just showing the moving averages and new trend line support started since the gap up three weeks ago. You can see that the space between the 10ma and 20ema is widening and the 20ema crossed over the 200ma last week as well. We're also about two weeks away from a golden cross of the 50ma over the 200ma which should get some hype.
As for eco numbers this week we have one on Tuesday but Thursday and Friday will be the big days. Maybe we'll get a retracement going into Tues or even Thursday and have a strong end of week. That's what I'll be watching for.
(Formerly known as "Richagain") My posts are my opinion and are subject to change without notice. I accept no responsibility for anyone who chooses to take any action based upon anything I post.
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