Jun 172010

The ES opened in the middle of it’s large overnight acceptance area and began to move down after a few minutes.  The 1109.75/10.50 rejection area provided some support for a few minutes but ultimately the market pushed through it down to the next rejection area of 1107.75/08.75.  After a rotation up and then back down, we got a big lots long setup.  Entry was at yesterday’s close of 1109.75 with the posted target of 1111.50.  Upon initiation of the trade, there seemed to be plenty of time before the 10:00am EST Leading Indicators report and Philadelphia Fed survey.  Luckily the target was reached a couple of minutes before the reports.  The leading indicators missed expectations and the general business index released the the Philly Fed missed by a lot.  The ES immediately became volatile with the negative news bias.  It now seems to have got some footing within all the resistance from 1098.75 up to 1104.25.  It’s hard to tell where the ES will go from here, but I wouldn’t be surprised if it makes another attempt at the day’s low before the end of the day.  However, there seems to be a general bullish bias to the market as it keeps shaking off bearish news.  The quadruple witching tomorrow only adds to the uncertainty.

 Posted by at 11:38 am

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