12:48 pm For the Sep 09 contract, 911.75 is the last major 50% retracement (from May 17 low of 871 to the June 5 high of 953.00), which as we write is being tested.  To any shorts that entered on the test of 924.00, congratulations.  We are no longer in range trade mode and shorts may reenter at 915.00, then 917.25.

The ES just filled its gap hitting a low of 919.25, which is also a tick below the 61.8% retracement from the Globex range.  Longs do not want to break this level or we will likely get at least a retest of Globex lows at 916.25, possibly, 915.25, yesterday’s low.  Internals suggest rangebound action, so be on aleart for a false break down through resistance that is quickly reversed.  Shorts will enter at 921.75-922.00 and can fade a retest of the 924.00 to 924.75 day and Globex high areas.  Above that, and we expect short covering and are bullish.  Longs can enter at 920.00 while day session lows hold at 919.25 and can fade a test of Globex lows at 916.25.

Gold hit its 50% retracement off the most recent highs yesterday and has rebounded.  We’ll be watching if 926.90 holds as this could be a bellweather for equities.

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