WEEKLY PIVOTS FOR WEEK ENDING Jan. 4, 2008
The markets opened strongly on Monday and held above the 1500.00 level on the E-mini S&P futures guided by the Merrill Lynch news of a $6.2 billion capital injection easing concerns about liquidity in the financial sector. It was an uptrend day with extremely low volumes. Upon returning from Christmas holiday on Wednesday, a lower opening was reversed and the main index closed almost unchanged despite the weakness expected in the retail sector. On Thursday’s pre-session, what it seemed to be a strong opening was reversed by the news of the assassination of Pakistani opposition leader Benazir Butho and the lower than expected rise in the November durable orders report, resulting in a 20 points drop in the E-mini S&Ps and 190 points in the Dow, which closed below its important 13450 pivot level. Another gap up on Friday’s opening was reversed forcing the E-mini S&P to test our 1481.00 weekly support # 2 level after a government report confirmed the ongoing weakness in the housing sector.
The weakness seen on the E-mini Russell on Friday’s session had a heavy impact on the E-mini S&P, which couldn’t break above intraday resistance. The E-mini S&P closed the week below fair value.
The last day of the month has a tendency to be bullish and according to the Trader’s Almanac the first trading day of January has been an up day almost every year, but to be able to get back on the uptrend the indexes will have to break above Friday’s intraday resistance and hold any kind of pullback.
Trading is expected to be very light and that could favor the upside once the initial resistance levels get broken. But until that takes place, the indices would be range bounded or exposed to further losses. For today’s trading roadmap and intraday updates, please read the authors bio.
TODAY’S SUPPORT, PIVOT AND RESISTANCE LEVELS
AS DAILY HIGH
AS DAILY LOW
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 firstname.lastname@example.org
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