17 Mar
Pre-open eMini S&P 500 Morning Report for March 17, 2010
Posted in Pre-open Analysis by Bob English at 7:50:33 6 CommentsThe Precise Take – Equity futures extend gains overnight, but leaders at inflection points
Leaders Analysis: The US Dollar finally reached 79.53 support overnight, the 38.2% retracement of its January to February rally, which also coincides with long term pivot and 50 day moving average support. While it could eventually reach the 50% retracement at 78.97, it should bounce here first. Similarly, the EuroYen and 30 Year T-Bond yields are at potential reversal levels, so the leaders are equities bearish today.
Medium Term Analysis: Yesterday, the ES cleared critical resistance at 1152.75 and is up materially overnight, having reached precisely the March contract high of 1159.50. This should pave the way for higher prices, however, not necessarily immediately. Given the leaders’ stance, we expect to see at least a test of…
spainconsultant
on March 17 2010 at 09:57:12
Strong ES again…….. seems every day up it´s “the new normal”
Bob English
on March 17 2010 at 10:05:03
Stronger than I anticipated. USD is strong too, which is the main misleading signal I got earlier. Will probably resolve by end of today. Not comfortable shorting until daily R2 is hit. Not really interested in going long at these levels either.
spainconsultant
on March 17 2010 at 10:57:57
I´m short from yesterday and this morning in this wonderbra (permanent push up) market
U asses incredible well the escenery, still think probably a retracement to 1147 by tomorrow? Well anything is posible but how good are the chances?
We have a lot of almost continued days up, indicators point to a overbought but market seems steady and confident with low VIX and resistance cleared. Should we turn all bulls now of the day some pullback comes could it be violent?
Thanks Bob, great work everyday
Bob English
on March 17 2010 at 12:01:30
Retracement to 1147 was more likely if 1159.50 was not exceeded. Now, ES may only retrace to 1153, but even this is contingent on 1163 not being exceeded. If ES climbs above 1163, we may get no correction. Difficult to say when leaders are out of whack.
sdg
on March 17 2010 at 14:03:40
It’s best to be an obedient PA of PA … Personal Assistant of Price Action. Takes the guess work out of trading.
spainconsultant
on March 17 2010 at 14:53:08
Some weeknes in afternoon, but too many witchs around
January correction started after opex week