ECONOMIC CALENDAR
8:30 AM Retail Sales
8:30 AM Retail Sales ex-auto
8:30 AM PPI
8:30 AM Core PPI
8:30 Initial Claims
10:00 AM Business Inventories
ROLLOVER DAY IS TODAY DEC. 13, 2007. MARCH ‘08 BECOMES THE FRONT TRADING CONTRACT BUT DECEMBER IS STILL VERY LIQUID. MY NUMBERS ARE BASED ON THE MARCH 08 CONTRACTS.
EMINI SP =ESH8 EMINI NASDAQ =NQH8 EMINI RUSSELL =ER2H8
All the indexes opened with a huge gap after the Federal Reserve and four other central banks added cash to the financial system in the biggest concerted liquidity injection since the 2001 terrorist attacks.
We surely had a very erratic trading session as the E-mini S&P 500 futures and all the other indexes opened with huge gaps, the E-mini S&Ps with more than 30 points but bellow the 1517.00 area printed during the Globex session.
Yesterday I wrote:
“For today’s session, a gap up opening should offer an immediately correction and the continuation of the selling pressure as the indexes should fill this gap and test or break yesterday’s lows”, “Tuesday’s correction is just bellow the 38.2 retracement from the 1527.00 high and should go further to the 50% Fibonacci level at 1466.00 on the E-mini S&P futures.”,” Any attempt to drive prices higher should be met with selling pressure, at least for a couple of days.’
I was expecting a correction move from a higher opening, but honestly its very unusual that after such a higher opening the market was able to fill the gap left at the opening.
The E-mini S&Ps opened at 1515.00 and immediately was sold reaching 1495.75. This low was bought taking the index back to the 1502.75 area where a double top pointed the end of the rally. My intraday update called for the downside to gain momentum once the 1496.00 would be broken, but I was expecting support to come in at 1492.00. The index cut through those levels and reached 1485.75 before bouncing back to the 1496.00, the previous support and now resistance area. Unable to surpass the turning point sellers stepped in pushing the index down to 1468.75, just two points above my predicted low at 1466.00 based on the 50% Fibonacci retracement from the highs. Another intraday update called for a late rally once the market would be able to trade above 1478.50, the market reached this area but failed on the first attempt, but after making a higher low got its foot going and rally as strong as it felt to 1490.00 closing positive for the day. The E-mini Russell futures held nicely above 760.00 and the E-mini NASDAQ futures tested the important old high at 2072.00.
For today's trading roadmap, please read the full report.
TODAY’S SUPPORT, PIVOT AND RESISTANCE LEVELS
S&P
NASDAQ
RUSSELL
Resistance 3
1517.00-1518.00
2156.00-2158.00
792.00-792.60
Resistance 2
1512.00-1513.25
2148.00-2150.00
786.30-788.00
Resistance 1
1505.00-1507.00
2138.00-2140.00
781.00-782.30
PIVOT
1498.00
2126.00
779.80
Support 1
1485.75-1484.75
2113.00-2111.00
770.00-769.60
Support 2
1481.00-1479.00
2098.00-2096.00
765.00-763.80
Support 3
1472.00-1470.00
2074.00-2072.00
749.00-747.80
S&P
NASDAQ
RUSSELL
FIBONACCI
FIBONACCI
FIBONACCI
1606.28
2264.24
839.00
1594.72
2248.01
832.51
1576.00
2221.75
822.00
1557.28
2195.49
811.50
1545.72
2179.26
805.01
1527.00
2153.00
794.50
1508.28
2126.74
784.00
1502.50
2118.63
780.75
1496.72
2110.51
777.51
1478.00
2084.25
767.00
1459.28
2057.99
756.50
1447.72
2041.76
750.01
1429.00
2015.50
739.50
1410.28
1989.24
729.00
1398.72
1973.01
722.51
DAILY PROJECTIONS
S&P
NASDAQ
RUSSELL
AS DAILY HIGH
1524.50
2151.00
793.60
AS DAILY LOW
1478.00
2089.00
765.20
Support, Pivot and Resistance levels courtesy of Arturo Stern. He authors the E-mini Daily trading advisory which gives technical analysis on all the major stock index futures contracts. For more of his analysis go to www.theminitrade.com Arturo can be reached at arthur@theminitrade.com
Futures and options trading involve risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. This is neither a solicitation nor an offer to buy or sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this document. The past performance of any trading system or methodology is not necessarily indicative of futures results.
All the material contained here or in any communication is only for information purposes and part of our thoughts and personal conclusions.
