E-mini trading advisory for Sept. 22

DAILY TRADING ADVISORY 22-September-2009

Leading Indicators up .6% as recovery gains ground, markets recovered from early losses fluctuating in a narrow range for most of the day.

ECONOMIC DATA

10:00 AM U.S. Housing Price Index

YESTERDAY’S MARKET

After trading lower during the Globex session, the E-mini SP started the day at 1054.50 and after bouncing one point, it backed off to 1053.00 from where the index rallied to 1058.00. Unable to break higher the SP sold off to 1052.75. The SP bounced to 1057.25 but once more failed to break out of the trading range. Finally and leaded by the strength on the Nasdaq the SP pushed higher reaching 1061.50. Then the markets started to trade on a sideways pattern, not too much action, but during the last hour of the session the SP reached a new high at 1062.75 but failed to break above my intraday resistance area at 1063.00 The markets pulled back into the close but held, for the day, the SP lost 2.25 points and settled at 1060.50, the Nasdaq added 7.75 points finishing the day at 1727.75 and the Russell lost 0.40 points closing the day at 613.80. The Dow closed lower by 41 points at 9,778.

MARKET COMMENTARY AND OUTLOOK

Early weakness resulted in a buying opportunity in a session that most of the time the markets fluctuated in a narrow range, the 1052.50 weekly pivot point held perfectly during the early going showing good support at high levels.

In yesterday’s newsletter I wrote about the possibilities of a short time correction, a first degree pullback that does not exceed three to four trading sessions, however, yesterday’s action calls for a consolidation and not a correction.

This low volume and slow action could continue also during today, and may change after next Wednesday’s FOMC meeting. So, yesterday’s trading action does not give as a clue for the next important move, a trading range with the 1067.00 area on the upper boundary and 1052.00 on the lower border, so trading both sides of the markets could result, however, if the Nasdaq is over performing the SP, look for this index to show some short covering in front of the Wednesday announcement.

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

1074.50-1075.00

1749.75-1750.50

624.60-625.80

Resistance 3

1069.50-1070.50

1742.50-1744.25

621.20-623.00

Resistance 2

1065.00-1066.50

1737.50-1738.75

617.50-618.50

Resistance 1

1062.50-1063.50

1730.00-1732.00

614.60-616.10

PIVOT

1058.25

1722.75

612.70

Support 1

1058.50-1057.50

1722.00-1720.50

612.20-611.50

Support 2

1055.00-1054.00

1717.25-1716.00

609.10-608.50

Support 3

1051.50-1050.25

1712.00-1711.00

606.10-604.20

Support 4

1048.00-1047.00

1703.50-1702.00

600.50-599.60

S&P

NASDAQ

RUSSELL

FIBONACCI

FIBONACCI

FIBONACCI

1110.56

1848.50

652.5

1092.20

1804.44

638.7

1080.95

1777.44

630.2

1074.00

1760.75

624.9

1069.70

1750.44

621.7

1062.75

1733.75

616.4

1058.45

1723.44

613.2

1057.13

1720.25

612.2

1055.80

1717.06

611.1

1051.50

1706.75

607.9

1044.55

1690.06

602.6

1040.25

1679.75

599.4

1033.30

1663.06

594.1

1022.05

1636.06

585.6

1003.69

1592.00

571.8

DAILY PROJECTIONS

S&P

NASDAQ

RUSSELL

AS DAILY HIGH

1067.25

1744.00

615.10

AS DAILY LOW

1056.00

1717.25

606.60

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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