E-mini trading advisory for Sept. 16

DAILY TRADING ADVISORY 16-September-2009

NY Empire Manufacturing Index expanding at its fastest pace in almost two years, PPI up 1.7% on gasoline surge and Retail sales up 2.7% gave way to a strong opening, a pullback and a rally to new highs. Chief Bernanke said that the recession is likely over.

ECONOMIC DATA

8:30 AM Core CPI

8:30 AM CPI

9:15 AM Capacity Utilization

9:15 AM Industrial Production

10:35 AM Crude Inventories

YESTERDAY’S MARKET

After testing our key support 1038.75 area during the Globex session, the E-mini SP made a preopening high on the release of the economic numbers, the index reached 1048.75. The session started with the index opening at 1045.25 and after pulling back to 1042.75, it bounced back reaching 1047.50. Unable to make new highs, the SP pulled back to 1042.00. After a strong battle around the 1043.00-1042.00 areas, the SP pushed down to 1038.50. As the lows held, the index bounced once more and once the 1041.00 area get exceeded, the SP made it to 1045.50, after hesitating at that level, the SP started a low uptrend that reached the 1050.00 level. Later, it pulled back to 1046.00 and once more in a slow move reached new highs at 1051.50. The rally lost its steam, pushed down to 1047.00, bounced, failed to hold near the highs and pulled back into the close. For the day, the SP added 2.50 points and settled at 1046.00, the Nasdaq closed higher by 7.00 points at 1695.00 and the Russell gained 5.60 points finishing the day at 600.90. The Dow

MARKET COMMENTARY AND OUTLOOK

Markets rallied on the news closing once more with moderate gains. My 1040.00-1038.50 area played out well and the markets rallied to new highs, the SP posted its second consecutive close above the 1040.00 area.

Today’s early close of all the business and office buildings at Mexico City, the Independence Day is tomorrow, does not give me a chance to extend my analysis, but yesterday’s strategy continues to be in play, buying the pullbacks all the time that the SP holds above the 1040.00-1038.50 levels will continue to be in play, shorting only on double tops at yesterday’s highs.

Today, I won’t be able to place my intraday updates, tomorrow no newsletter or support and resistance areas, see you back next Thursday. GOOD LUCK.

TODAY’S SESSION

TODAY’S SUPPORT, PIVOT AND RESISTANCE LEVELS

S&P

NASDAQ

RUSSELL

Resistance 4

1059.00-1060.50

1721.00-1723.00

613.60-614.50

Resistance 3

1056.00-1057.00

1714.00-1715.00

610.50-611.80

Resistance 2

1052.50-1053.50

1705.00-1706.00

605.70-607.20

Resistance 1

1047.50-1049.50

1698.00-1700.50

602.00-603.50

PIVOT

1045.50

1692.25

599.00

Support 1

1044.50-1042.50

1691.00-1689.00

598.80-597.70

Support 2

1039.00-1038.00

1684.00-1682.00

594.60-594.20

Support 3

1035.00-1034.00

1675.00-1673.00

591.10-589.50

Support 4

1031.00-1030.00

1668.00-1666.00

587.50-586.60

S&P

NASDAQ

RUSSELL

FIBONACCI

FIBONACCI

FIBONACCI

1110.44

1796.56

652.7

1088.00

1760.25

633.9

1074.25

1738.00

622.4

1065.75

1724.25

615.3

1060.50

1715.75

610.9

1052.00

1702.00

603.8

1046.75

1693.50

599.4

1045.13

1690.88

598.1

1043.50

1688.25

596.7

1038.25

1679.75

592.3

1029.75

1666.00

585.2

1024.50

1657.50

580.8

1016.00

1643.75

573.7

1002.25

1621.50

562.2

979.81

1585.19

543.4

DAILY PROJECTIONS

S&P

NASDAQ

RUSSELL

AS DAILY HIGH

1055.75

1709.00

608.10

AS DAILY LOW

1042.00

1687.00

596.60

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.

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