How are you all doing? Alright lets get going.
Some of the major market in Europe and in UK were closed yesterday. The US had subdues trading as well as the market was waiting for Bernanke's speech which just took place a while ago.
The US market closed as per the following:
The Dow closed down -131 points or -1.00% to close at 12,930
The S&P500 closed down -16 points or -1.14% to close at 1,382
The Nasdaq closed down -33 points or -1.08% to close at 3,047The S&P500 closed down -16 points or -1.14% to close at 1,382
Take note that we did not close an additional down day from my last post yesterday! lol.. This is just for the respective index, which opened lower due to the lower close in futures on Friday. Yesterday's post was for the futures closing. :)
Alright The ES (S&P 500) is just trading above our support of 1374. The Low of yesterday was 1371.75 which broke below the support but we recovered from there to trade at 1376.25 now, up 1.25 points as of 8.25am.
Whats in store for us:
Coincidentally, our chart looks a bit like the S&P chart too. We are trading just outside of the lower trend line now. The good news is that we have support around these area, so I don't expect selling to come in fast and hard.
But we did break a trend line tho. What could happen after breaking a trend line is, 1) we continue to break down, or 2) we go back to test the highs where after we might i) go beyond the high, or ii) never testing the high, or 3) we will consolidate around these ranges.
For no 2), I will explain more on it in other post as it will take up a lot of space.
So, what should we expect for today? We have a host of numbers tonight but which are not as significant as the as the unemployment numbers for example. But they are numbers nonetheless.
I think we will have a better range to trade today. Are we going to sink down from here? Ehh.. I think not today.. Are we going to bounce back into the pattern? Perhaps not today too.. I think we will still be trading below the trend line by the end of today, but I expect support to hold somewhat.
So follow your strategies accordingly. If you are planning to buy, make sure it is at where support is holding and if you are planning to sell, make sure it is at where resistance is holding. Be prepared to take quick profits if you are scalping and trail your stops to protect your profits.
Here are the levels for today:
Upper resistance: 1594 and 1591
Lower Support: 1585, 1582, 1578, 1574
Trade safe all!
Best Wishes,
Test Trader
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