Today’s action should remain bullish, here’s why
We saw the expected, predicted
window-dressing ramp by the big funds yesterday… albeit a bit early. Usually
it is later in the afternoon, often inside the final hour of trading when
next-to-last day of month = quarter goes vertical. This time around, those
sneaky funds hammered the buy programs during midday lull period when volume is
lowest and effect highest. More on that in the weekend educational post… let’s
see what today may bring to traders:
ES (+$50 per index point)
S&P 500 closed just above its upper resistance
level yesterday, after bouncing sharply off the lower level. Covered the entire
range plus a tad more intraday… these values are more than arbitrary lines
slapped on a chart.
Today’s action should remain bullish above
1230.50 and weak to bearish below, on a general basis.
ER (+$100 per index point)
Russell 2000 futuresÂ also bounced from lower
range value up to highest resistance where it closed several points above. Index
remains bullish over 664.50 and suspect below for today.
Pins May Be In
The last three end-quarter sessions back to 9/2004 include an FOMC in June
2005. Nixing that one for comparison, we see 9/04 and 3/05 end-quarter session
charts for the ES below:
Overall, both sessions chopped sideways without
going anywhere at all. Big-money players kept price action in place… it was
actually the next sessions where solid directional moves took place. We never
know what any given session may do, that is randomness of financial market
action. However, past behavior is the best judge of future behavior we have for
reference. If the recent end-quarter session pattern follows suit, yesterday and
Monday are the directional moves while today could be one long sideways snooze.
Trade To Win
(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.