Look for a price range expansion today

Friday’s session:

ES (+$50 per index point)

S&P 500 traded inside a 5.75pt total range on
Friday, in pure sideways fashion. That micro-range session sets up potential for
normal (?) to large range price expansion today. Sure will be a lot more fun to
trade when VIX levels climb up from multi-decade lows upward and intraday ranges
expand to historical norms once again. That’s my Christmas wish from Santa!

ER (+$100 per index point)

Russell 2000 was also sideways with a bit more
dramatic flair. Little wiggle lower midday gave a couple of 1,2,3 swings upward
to end the day at session and weekly highs. Still a small to modest (at best)
overall range between the bells.

This Session:

ES (+$50 per index point)

S&Ps closed the week relatively unchanged from
the week before. 26 calendar days before this year is booked… anything above
1211 is net gain for 2005. Price action could pull back considerably and still
remain inside a defined uptrend bias.

ER (+$100 per index point)

Small caps and techs enjoyed the positive flow
of sector rotation on Friday. If the markets are destined higher into year’s end
or beyond, this type of leadership should be maintained. Next support near 675
below would be nothing more than a normal pull back inside very bullish markets,
a magnet we could easily see in the next session or three ahead.


Three weeks of trading remain until the New Year rings in. There’s an
emphasis on upside potential for the last couple days before Christmas and then
week heading into the start 2006. Between now and then has historically been
somewhat sideways = choppy if we look back in previous year’s charts. I’ll be
trading short or long as clear signals dictate, with a slight nod toward the
upside when price action is in a state of sideways indecision.

Trade To Win

Austin P


(Weekend Outlook trend-view section
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.