11:30 am EDT: As is demonstrated by the below chart, the ES is back to the upper end of its trading range. Long term volume at price for the Mar 10 contract (not shown) peters out above 1110.50, so if the ES continues to accept value at these levels, chances of breaking the existing range and eventually moving to test at least the 1126 level over the next few days are very good. From a day trade perspective, both longs and shorts look pretty aggressive here. The EuroYen never broke up through its 20 day MA and the current high of 1112.00 was made in the first hour, but the ES is accepting at the high end of the multi week range and an afternoon push up is in the cards as long as 1107.00 holds. That’s about as helpful as we can be now.
Disclaimer: The information presented on this site is for educational purposes only. No personal trade recommendations are being made hereby. Trading futures is highly risky and you can lose a substantial amount of money. Past performance is not necessarily indicative of future results.
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sdg
on December 21 2009 at 15:44:19
The 81 min chart is fabulous for day trading and forecasts price action for the next few days. On Friday market found support at the bottom of the price channel and is up solid today.
sdg
on December 21 2009 at 16:01:20
How can one tell if market is accepting buying value vs selling value at the high prices? Thanks Bob.
sledbug
on December 21 2009 at 17:08:06
Why is the EuroYen so important?
Why a 81 min chart, do you use a 60 min?
Thanks Bob
I am learning a lot and it is helping my trading.
sdg
on December 21 2009 at 17:30:04
The day trading session has 405 minutes and the 81 min chart divides the day into five equal periods.
sledbug
on December 21 2009 at 21:14:06
Thanks sdg for the info on 405 mins, now that brings up some more questions, what charts do you use?
do you use the @es or the @es.d for your charts I notice the indicator values change, what does the majority of traders use?
Thanks for your help
Bob English
on December 22 2009 at 08:52:21
@sledbug: The EuroYen has been a good proxy for how much risk appetite there is and is strongly correlated with equities, which themselves are risk instruments. Wathing the EuroYen around important technical levels can be a leading indicator. sdg is correct about the 81 min chart. I follow both the day-session-only charts and combined session because I want to know what as many different traders are looking at as possible. Pivots off the day-session-only charts tend to carry more weight.
@sdg: When a mkt is accepting value, you will see price tend to stay within a small range and trade a lot of volume. Yesterday, what was important was that the ES was accepting value in an area that had been previously rejected. This allows the mkt to springboard from the new value area.
Pre-open eMini S&P 500 Morning Report for December 22, 2009 | The Precision Report
on December 22 2009 at 09:51:32
[...] Today: The 81 min chart we posted yesterday demonstrates the consistent channel trading of the ES this month. If the pattern were to hold [...]
Pre-open eMini S&P 500 Morning Report 12.22.09 | Wall St. Cheat Sheet
on December 31 2009 at 10:36:43
[...] Today: The 81 min chart we posted yesterday demonstrates the consistent channel trading of the ES this month. If the pattern were to hold [...]