E-mini Trading Advisory for August 14

Daily analysis of the major stock indexes including support/resistance and Fibonacci numbers.

DAILY TRADING ADVISORY AUGUST 14, 2009

Wal-Mart beating expectations, Retail Sales unexpectedly fall by 0.1%, Initial Claims up to 588K and Business Inventories down 1.1%, markets rally.

ECONOMIC DATA

8:30 AM CPI

8:30 AM Core CPI

9:15 AM Capacity Utilization

9:15 AM Industrial Production

9:55 AM Michigan Sentiment-Prel

YESTERDAY’S MARKET

After trading sharply higher during the Globex session, markets gave back some of their earnings once the pre opening economic data was released, the E-mini SP started the day at 1006.25 and pulled back to 1003.75. After bouncing to 1006.50, the SP sold off to 998.00 where buyers stepped in strongly pushing the index up to 1008.00, and then to 1010.00 and 1632.00 on the NQ. The move lost its steam and the markets pulled back, the SP found support at 1005.50 and bounced to 1008.50. After trading in a narrow range, the SP finally pushed higher and reached 1011.75, but the failure of the Nasdaq to break above the 1632.00 level gave way to another pullback that gained some momentum pushing the SP down to 1002.25. Markets held and the SP bounced to 1007.75, pulled back to 1005.00 and started a late rally that pushed the index near to the highs. For the day, the SP gained 11.25 points and settled at 1013.50, the Nasdaq closed at 1631.50, up 12.75 points and the Russell added 5.30 points finishing the session at 575.60. The Dow closed higher by 36 points at 9398.

MARKET COMMENTARY AND OUTLOOK

Markets made their daily highs during the Globex session and sold off, the SP founded support at my 998.50 area keeping the uptrend intact.

There is not too much to add to yesterday’s newsletter, the trend is strong, intact and on every pullback buyers appear. However, the SP has to trade above the 1016.00 area and the Nasdaq has to hold above the 1630.00-1632.00 levels in order to press higher, otherwise the double top on the SP and the ceiling on the Nasdaq may give way to more sideways trading between the 998.00 and 1016.00 levels.

If you are holding a long position, you may be selling the rallies and reestablish your longs on the pullbacks, but if the economic reports to get released today give way to new buying a strong breakout or an uptrend session may be seen. I continue to favor the long side and I think the next stop will be between the 1032.00 to 1038.00 areas on the SP and 1675.00 on the Nasdaq.

For today’s trading session, the trend remains intact unless the SP breaks below the 1002.00 area; I will try my first long trade around 1008.50, obviously with a tight stop.

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

1028.50-1031.00

1654.00-1655.00

586.00-587.20

Resistance 3

1023.25-1025.00

1647.00-1648.50

582.60-583.40

Resistance 2

1018.50-1020.50

1640.00-1641.50

579.50-580.80

Resistance 1

1015.00-1016.00

1634.00-1636.00

576.80-577.70

PIVOT

1009.00

1626.50

573.30

Support 1

1011.50-1010.25

1627.50-1626.00

573.80-572.00

Support 2

1008.50-1007.00

1621.00-1619.00

570.30-568.80

Support 3

1004.00-1002.50

1614.00-1612.00

564.40-563.40

Support 4

998.00-996.50

1602.00-1600.00

560.10-559.60

S&P

NASDAQ

RUSSELL

FIBONACCI

FIBONACCI

FIBONACCI

1088.56

1759.63

632.6

1060.41

1713.11

611.8

1043.16

1684.61

599.1

1032.50

1667.00

591.3

1025.91

1656.11

586.4

1015.25

1638.50

578.6

1008.66

1627.61

573.7

1006.63

1624.25

572.3

1004.59

1620.89

570.8

998.00

1610.00

565.9

987.34

1592.39

558.1

980.75

1581.50

553.2

970.09

1563.89

545.4

952.84

1535.39

532.7

924.69

1488.88

511.9

DAILY PROJECTIONS

S&P

NASDAQ

RUSSELL

AS DAILY HIGH

1023.00

1649.50

583.40

AS DAILY LOW

1005.75

1620.00

570.70


Support, Pivot and Resistance levels courtesy of Arturo Stern. He authors the E-mini Daily trading advisory which gives technical analysis on 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.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome