ECONOMIC CALENDAR
10:30 AM Crude Inventories
The European Central Bank’s $500 billion injection in to the banking system, Goldman Sachs stellar numbers, and the as expected poor housing starts and building permits numbers, were yesterday headlines in a volatile session.
An overnight rally took the markets up for the opening just to our resistance area at 1471.50-1473.00 on the E-mini S&P futures. Unable to break above resistance the index was sold and reached 1458.00, a feeble bounce to the 1464.00 area printed a double top and with heavy selling pressure in all the indexes the bears gain control and a steady sell off drove the E-mini S&P futures to a daily low at 1444.75 while the E-mini NASDAQ futures printed 2021.00 on the chart and the E-mini Russell futures got to 738.70 respecting our third level support.
Our “ DAILY PROVECTIONS” called for lows at 1444.00 on the E-mini S&Ps, 2019.00 on the E-mini NASDAQ and 737.00 on the E-mini Russell. During this move down, the Chicago Board Options Exchange’s VIX.X index was down by 3% signaling the possibility of a reversal. After holding those lows all the indexes turned back and broke easily above the 1453.00 intraday resistances on the E-mini S&P and did not stop until the 1470.00 level was reached. A consolidation pullback tested the 1462.00 area and the S&Ps rallied back to 1471.00 before pulling back in to the close closing off the highs for the day.
The move from the lows was an expected consequence of short term oversold conditions and an important downside objective on the cash Dow around 13080 and a successful fill (almost) of the November 28 gaps on the S&Ps and Russell.
Yesterday I wrote about the importance of the 1473.00, 2071.00 and 760.00 resistance areas as the turning point to have a recovery rally that could last until the end of the year. “These areas are extremely important, particularly on the E-mini NASDAQ as they have been pivotal points during the last three months.” The indexes were rejected early on the day from these levels and closed bellow them, particularly the lagging NASDAQ has been on a fast trend down, and unless-until those areas are broken and hold on a pullback the daily trends will still be down. The exhausting move and yesterday consolidation of the fast down trend will need to show follow through or as in the last weeks will result in a weak one day rally followed by increasing selling pressure. I wouldn’t get too bearish because if this rally is going to last for another 2-3 days or even until the first trading sessions of January, yesterday’s lows or a higher low during today’s session fall in the perfect timing for some king of recovery before the next big drop.
Yesterday’s low formed a pivot pattern with an increase in buying volume and that indicates that those lows should hold at least for a few days, and if not a panic move could result in much lower prices. For today's trading roadmap, please read the full report.
TODAY’S SUPPORT, PIVOT AND RESISTANCE LEVELS
S&P
NASDAQ
RUSSELL
Resistance 3
1482.00-1483.00
2078.00-2079.00
769.80-771.80
Resistance 2
1478.00-1479.00
2071.00-2073.00
764.00-765.90
Resistance 1
1471.50-1473.50
2059.00-2061.00
759.80-760.70
PIVOT
1464.00
2047.50
754.50
Support 1
1462.50-1461.00
2047.50-2045.75
752.20-751.80
Support 2
1459.25-1458.00
2038.00-2036.75
746.30-744.50
Support 3
1452.00-1450.00
2024.00-2023.00
732.20-730.90
S&P
NASDAQ
RUSSELL
FIBONACCI
FIBONACCI
FIBONACCI
1514.47
2349.28
794.73
1508.28
2337.72
789.67
1498.25
2319.00
781.50
1488.22
2300.28
773.33
1482.03
2288.72
768.27
1472.00
2270.00
760.10
1461.97
2251.28
751.93
1458.88
2245.50
749.40
1455.78
2239.72
746.87
1445.75
2221.00
738.70
1435.72
2202.28
730.53
1429.53
2190.72
725.47
1419.50
2172.00
717.30
1409.47
2153.28
709.13
1403.28
2141.72
704.07
DAILY PROJECTIONS
S&P
NASDAQ
RUSSELL
AS DAILY HIGH
1482.00
2078.00
769.80
AS DAILY LOW
1451.00
2024.50
745.80
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 contract. For more of his analysis go to www.theminitrade.com Arturo can be reached at arthur@theminitrade.com
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All the material contained here or in any communication is only for information purposes and part of our thoughts and personal conclusions.
