Focus on this bullish chart
Wednesday’s session was yet another
case of stock index markets going up ugly. The ES, NQ and YM tried real hard to
sell off all day long, with ER the lone respite for bulls. That split decision
in the indexes kept every emini tape chopping all the way thru. It was a day for
skilled, experienced, decisive scalpers for sure, not much else until the final
hour arrived.
ES (+$50 per index point)
S&P 500 futures chopped their way downward all
session. We saw the swing highs turn at 1276.00, 1274.00 and 1272.00 in very
deliberate fashion. A second day of traders selling R1 and buying S1 with no
opposition either way. Sell signals at the blue arrows were clearest trades for
the day, whereupon buyers swooped in for whatever reasons they did and pumped
price action straight up to current Globex levels.
ER
(+$100 per index point)
Russell 2000 futures were just as staccato,
finding it impossible to ascend yet refusing to sell off much at all. Blue
arrows denote sell signals, which only worked for scalp gains in what was truly
a scalper’s tape yesterday. Final hour ramp from lows to current Globex levels
was by far the biggest swing when recalcitrant buyers finally stepped up to the
plate.
ES (+$50 per index point)
The month of Jan 2006 has a swing low at point
#1, high at point #2 and most recent low at #3. Drawing measured grids from 1-2
and then 3-4 shows 62% support near 1270 broke the 1-2 grid in bearish fashion.
That leaves grid 3-4 in play with 1281 ~ 1282 as the key visible magnet of
resistance in this chart for traders to deal with.
ER
(+$100 per index point)
Russell 2000 has a much cleaner daily chart:
straight bullish all the way. Keeps going to new all-time highs more sessions
than not, and will open in rarified air at the bell this morning, too.
Summation
A few days of directional action, a few more days of consolidating chop. Up or
down will be just fine with all of us, once the markets make a decided push
sustained for weeks ~ months to come. Until then we have indexes that are rising
in agony.
Trade To Win
Austin P
(Online video clip
tutorials…
open access)
Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets.
Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.