2013-04-19

$ES_F : 1545 - 1525 : Expected Day Session Range for EMINI

Trend has turned bearish. Move to 1500-1450 under way.


Selling Rallies


The market is developing a well established rhythm of breaking new lows on high volume followed by low volume recovery. The volatility has increased causing the size of reaction and subsequent falls to increase (which is better for trading perspective as long as proper risk management is employed). Market is being supported by the 50 dma and so far it has acted as good support but I would expect that to be broken in coming days. It appears that a move to 1500 - 1450 area has begun. I will update the comments section as the day develops which can be subscribed for email triggers.



Today I would expect to find resistance in 1545-50 area, with 1555 area being anchor point for shorts. I would expect this move to develop into a down side support near 1525-1521. The trading range top is 1571 which should also be treated as line in sand for bears.

My hypothetical stock portfolio is short as of now.

The inter markets signals are supporting the current bearish move. Have a look at this post from longer term perspective which is keeping me cautious at these levels. Most commodities markets have broken down and signalling an end to commodities bullish cycle.