Here’s The E-Mini Resistance Level Where I’m Seeing Some Confluence

January 27, 2004
Chris Curran

Stock index futures started the new week with virtually
no gap and for the first few hours, it looked like the FOMC watch was
going to start early as the ES churned in a 4-point range. But news that
American Express had beat earnings estimates sparked a rally in Dow and the
Banking Index (BKX), which, in turn, ignited the SPX and the ES, taking most
other sectors along for the ride. The TICK and the PREM were strong all
afternoon, allowing buy programs to amplify the indexes’ gains.

The March SP 500 futures closed
Monday’s session with a gain of +14.00 points, and finished just off the high of
the session. Volume in the ES was estimated at 588,000 contracts, which was
behind Friday’s pace, but still above the daily average. Looking at the daily
chart, the contract posted a bullish engulfing line. On an intraday basis, the
60-min, 30-min, and 13-min charts all formed “cups and saucers,” which are
basically cups that haven’t pulled back to form a handle. There are also
possible bearish Butterflies forming that project a reversal area around
1,157.75, which would also coincide with weekly R2 resistance at 1,157.25.