22 Jan
Pre-open eMini S&P 500 Morning Report for January 22, 2010
Posted in Pre-open Analysis by Bob English at 9:57:48 13 CommentsThe Precise Take – Equities looking to consolidate after two day losing streak
Leaders Analysis: The US Dollar Index was not able to close above its December swing high and has rejected strong resistance. Accordingly, it looks poised to retrace a bit of its recent gains, which should help equities. The EuroYen tumbled yesterday to the bottom of its wide support band, broke through to the downside marginally overnight, but has recovered. 30 Year T-Bond futures were able to capitalize on equities weakness and push through strong moving average resistance. However the 30 Year yield is now testing 50 day moving average support, which historically has given it at least a pause. All in all, the leaders are equities bullish.
Medium Term Analysis: The general chatter is that the rally that began in 2009 is showing major cracks. While we agree, this does not preclude another run up or new material highs. FOMC and GDP next week could be catalysts. A major reason for the swiftness of decline yesterday was that the retracement was through an area that was traversed upward over the holidays on low volume. The ES has settled into an area that has more volume support, so a repeat of yesterday is unlikely, and further declines, if any, are likely to be more orderly.
Trading Today: We’re expecting a higher close, but there is a chance of a further washout after the open, down to the daily S1’s in confluence with weekly S3 (1101.00 to 1103.25), which marks the lower end of the projected range. For this area to hold, we want to see…
Pre-open eMini SP 500 Morning Report 1.22.10 | Wall St. Cheat Sheet
on January 22 2010 at 10:03:22
[...] This is a guest post from Precision Capital Management [...]
Jeff
on January 22 2010 at 11:29:56
Bob, you never cease to amaze. Looks like you nailed the downside target yet again. Nice work.
Bob English
on January 22 2010 at 11:54:36
Thanks. I’m less confident in it holding, though, because it came after the first 30 minutes. Still got a nice bounce, though.
sdg
on January 22 2010 at 13:24:33
Great work Bob.
sdg
on January 22 2010 at 15:18:05
15 min has formed bullish outside bar at D-S1 and we also have double bottom testing.
Jeff
on January 22 2010 at 16:15:29
Wow, this would be fun drop if it were a roller coaster, or better yet if I was short.
Where will we find support!?!
Bob English
on January 22 2010 at 16:23:56
Strong long term pivot confluence at 1083 to 1085, then strong volume support at 1063. Look out, because we’re probably not done until at least one gets hit.
Jeff
on January 22 2010 at 16:31:43
Thanks for the update Bob.
sdg
on January 22 2010 at 17:06:57
Nice call on 1101 will not hold.
Jeff
on January 22 2010 at 17:15:27
Definitely. I figured there was some leeway. But I guess when you said 30 minutes, you meant 30 minutes…not 39 minutes. I’ll keep that in mind next time.
Bob English
on January 22 2010 at 17:30:29
Washouts typically happen quickly, but can occur an hour or later after the open if the market is slow. It depends on the climate/sentiment. With blood on the streets, it had to be done very quickly today or risk everyone dumping. 30 min was the max today, but really wanted to see it in 15 min.
sledbug
on January 22 2010 at 21:05:45
Great Job Bob!!!!!!
I owe you guys a case of Beer
lordvortex
on January 23 2010 at 11:33:13
Just wanted to take a second and say thanks.
Is the Volume at Price for TradeStation
that you show sometimes available?
Thanks
Ps If anyone knows of one for TS it would be appreciated. Lordvortexx@aol.com