Here’s why I’m expecting good directional action today

Those dead-flat coils from Friday noon
thru Monday’s close did indeed break as predicted, but not in the manner
Yesterday’s emini session was filled with exaggerated, sideways
action. The afternoon rally attempt was sold into with gusto, pressing indexes
back toward lows for the session to end the day. That in itself sets us up for
what could be directional action today.

ES (+$50 per index point)

S&P 500 has layered resistance from 1241 to
1243, which is likely to hold any upside attempts today. A break below recent
swing near 1235+ would send this symbol probing for support considerably lower
than that. 1245 is the line of demarcation for bulls, if they intend to keep the
party going in northward direction.

MD (+$100 per index point)

S&P 400 has a short-term ceiling near 723 with
plenty of sell stops parked there right now. 718 level must hold, or she’s
headed back down to test Katrina lows again. Break and confirm above 725 has new
highs in sight from there.

YM (+$5 per index point)

Dow Industrial futures stare at 10670 and then
10700 as high hurdles to leap today. More probable to stall out and continue
lower, but upside break & close above 10700 has buyers back in charge.

ER (+$100 per index point)

Russell 2000 futures are a strong sell near 680
and don’t turn bullish confirmed until above 683. 673 must hold for further
upside potential to exist before deeper corrections ensue.

{Price levels posted in charts above are
compiled from a number of different measurements. Over the course of time we
will see these varying levels magnetize = repel price action consistently}


The emphatic afternoon drop after irrational pop yesterday taught dip
buyers that every apparent bottom will not hold. I would expect the same
dipsters who got burned yesterday to either lay off the long side aggressively
or hit the sell side in momentum fashion should selling begin to take hold. It
has been many sessions since the last large-range directional day… odds of
probability and recent intraday instability suggest a big day may be coming

Trade To Win

Austin P

(free pivot point calculator, much more inside)

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.