Federal Reserve Bank Chairman Ben Bernanke hinted that more rate cuts are unlikely; factory orders were surprisingly better than expected; lower commodities prices; Lehman’s down almost a 10% and auto and truck sales down resulted in a positive opening that get reversed later on the day closing the session with loses.
ECONOMIC DATA8:30 a.m. ADP Employment8:30 a.m. Productivity – rev.10:00 a.m. ISM Services10:30 a.m. Crude Inventories
YESTERDAY’S MARKETSThe E-mini S&P 500 opened higher reaching 1391.00 where early sellers took advantage and pushed the market down for a test of the 1385.50 area. With all the indexes holding the early pressure, unable to make new lows and with the E-mini Nasdaq showing strength, the E-mini S&P 500 rallied all the way up to 1393.00. The rally lost the momentum and the indexes pulled back, with the ES testing our 1388.00 pivot point level, from where it bounced a couple of points just to break lower and reached 1387.00. A second bounce that topped at 1389.50 was rejected and the index fell to 1386.50. Unable to make a new low, the E-mini S&P 500 started to move up testing the 1391.00-1392.00 area while the E-mini Nasdaq posted a double top at 2029.25, the indexes traded side ways for the next hour. A last attempt to break higher, took the E-mini S&P 500 to my 1393.50 where the index failed and sellers stepped in. Once the E-mini S&P 500 broke bellow my 1388.00 pivot point, the downside gained strong momentum and the carnage did not stop until the index reached 1372.50. A feeble bounce to 1376.50 was met with new selling and the index pushed down to new lows at 1369.25. The indexes held above the lows, and once the E-mini S&P 500 traded back above 1374.50, a short covering rally drove prices higher to 1381.50 where the index found strong resistance. After struggling below that level but holding the pullback, the markets finally pushed higher reaching 1383.50 on the E-mini S&P 500 and 2007.00 on the E-mini Nasdaq before pulling back into the end of the session. For the day, the E-mini S&P 500 gave back 7.25 points closing the session at 1378.25, the E-mini Nasdaq lost 12.75 points finishing the day at 1998.50, and the E-mini Russell settled at 739.10, down 1.90 points for the day. The Dow cash closed lower at 12402 losing another 100 points during the session.
TODAY’S SESSION
For today’s trading roadmap and intraday updates, please read the authors bio.
TODAY’S SUPPORT, PIVOT AND RESISTANCE LEVELS
S&P
NASDAQ
RUSSELL
Resistance 4
1396.25-1398.00
2026.00-2028.00
756.00-757.10
Resistance 3
1391.75-1392.75
2020.00-2022.00
751.80-753.00
Resistance 2
1385.50-1387.25
2012.00-2014.00
747.30-748.50
Resistance 1
1382.00-1383.00
2006.00-2007.00
742.30-743.70
PIVOT
1380.50
2002.00
739.20
Support 1
1376.25-1374.50
1993.00-1991.00
737.80-736.30
Support 2
1371.25-1369.75
1986.00-1984.00
734.00-732.50
Support 3
1366.00-1364.50
1974.00-1972.00
730.00-728.50
Support 4
1360.00-1358.50
1964.00-1962.00
725.00-723.40
S&P
NASDAQ
RUSSELL
FIBONACCI
FIBONACCI
FIBONACCI
1432.74
2110.96
773.25
1427.01
2099.04
769.45
1417.75
2079.75
763.30
1408.49
2060.46
757.15
1402.76
2048.54
753.35
1393.50
2029.25
747.20
1384.24
2009.96
741.05
1381.38
2004.00
739.15
1378.51
1998.04
737.25
1369.25
1978.75
731.10
1359.99
1959.46
724.95
1354.26
1947.54
721.15
1345.00
1928.25
715.00
1335.74
1908.96
708.85
1330.01
1897.04
705.05
DAILY PROJECTIONS
S&P
NASDAQ
RUSSELL
AS DAILY HIGH
1386.00
2013.75
743.30
AS DAILY LOW
1361.75
1963.25
727.20
Support, pivot and resistance levels courtesy of Arturo Stern, who 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
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.
