E-mini trading advisory for Sept. 11

Initial and continuing claims lower than expected gave way to another positive session closing at their best levels of the year.

ECONOMIC DATA

8:30 AM Import Prices

8:30 AM Export Prices

9:55 AM Michigan Sentiment- prel

10:00 AM Wholesale Inventories

YESTERDAY’S MARKET

The E-mini SP started the session at 1026.50 and after running to 1029.75 it pulled back to the 1023.00 area. With good support, the index bounced to 1029.25, pulled back to 1026.00 and pushed once more higher reaching 1033.75. The SP pulled back to 1029.75 from where it bounced once more reaching 1032.00. Then, the index traded in a sideways pattern holding the modest gains, later; it bounced back to 1034.50 and later posted a high at 1039.25. Once more the markets traded in a narrow range pattern holding near the daily highs. During the last hour the markets pulled back, the SP tested 1033.75 but bounced slowly and strong posting a new marginal high at 1039.50. A double top at that area gave way to a feeble pullback into the end of the session. For the day, the SP added 9.25 and settled at 1037.25. The Nasdaq closed higher by 19.00 at 1683.00 and the Russell added 8.50 points finishing the session at 591.00. The Dow posted another positive session closing at 9827, up 80 points.

MARKET COMMENTARY AND OUTLOOK

Yesterday I wrote: “Our previous upside objective for the SP was at 1038.50, so that index that managed to come back from the last sell off attempt may struggle against that resistance area for the next couple of days, two consecutive closes above the 1040.00 level may indicate another up leg that easily could push the index up to the 1060.00-1078.00 area, if that happens, the Dow will be facing the 10000 level. In think that this slow uptrend will continue, the 1038.50 area on the SP and another test of the 1675.00 level on the NQ may be in the cards for today’s trading session, but as yesterday I don’t expect a huge move, more back and forth action with a slightly bullish bias, however, some selling may be seen once the SP trades below 1028.00-1027.00, the real selling will appear only if the SP breaks below the 1018.50 level.”

So we had another positive session in the markets. The trading pattern that I described two days ago, in which the indexes continue to press higher without any wild move, is still in place. The Nasdaq and SP reached the 1675.00 and 1038.50 on the December contracts.

I can’t rule out a negative session, but honestly, that will not alter the bullish trading pattern. There is no reason at this moment for the trend to change to negative, so any intraday pullback may be considered a buying opportunity. It is true that the 1040.00 area may offer some resistance on the SP, the same is true at 9600 on the Dow, but it is also probable that after two slow trading sessions we could see a strong breakout that may push the indexes for the close, above these areas.

I don’t want to suggest to try the short side. I prefer to see a small shorting opportunity gone and keep buying the dips, in particular. It could be a good buying opportunity, a one day sell off that manages to push the SP down near to the 1021.00 area, but for now, the 1030.00-1028.00 levels may offer a good long entry.

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

1052.50-1055.00

1711.00-1713.00

604.00-605.10

Resistance 3

1046.50-1048.00

1701.00-1702.00

598.40-600.30

Resistance 2

1043.00-1044.00

1694.00-1696.00

595.10-596.60

Resistance 1

1038.50-1040.25

1686.00-1688.00

593.00-593.50

PIVOT

1033.25

1676.00

587.20

Support 1

1035.00-1033.50

1679.00-1677.00

589.70-588.60

Support 2

1031.00-1030.00

1673.00-1672.00

586.20-585.30

Support 3

1028.00-1026.50

1666.00-1664.00

583.00-581.50

Support 4

1022.00-1020.50

1658.50-1656.50

578.20-577.80

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

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

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