Jan 172013
 

trade_130117

It took a couple of weeks, but the SP 500 finally found reasons to break through it’s multi-year highs.  Both housing starts and jobless claims handily beat expectations fueling the ES to new heights pre-market.  The previous highs in the 71 area were expected to turn to support as I posted in chat.  Once the cash market opened, the ES drifted back down to test the 71 area as it waited on the 10am Philly Fed number which turned out to be horrible.  However instead of reacting negatively to the news, the bulls defended the 71 area and provided a long order flow opportunity.  The sellers weren’t done yet and tried one more time to take price down.  They were rejected which gave the buyers confidence to go retest the highs.

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