S&P (e-mini ) 1st September 2010 recap

"If US markets are going to follow my view of moving lower, then today's set-up is a high probability short-trade for a move back down into the Weekly lows...

If not price will continue higher.

The trend guide is simply the 5-day 50% level"



S&P Weekly and daily range.

The first day of September and price was starting with a higher daily open and trading around resistance levels (below September 50% level).

Market dynamics was different compared to the Australian Market, so my natural expectation is to look at the pattern and factor in a continuation of the move down:- using higher timeframe resistance levels

However, that wasn’t going to happen if price is above 1056:- Weekly level and 5-day 50% level.

Once above the September 50% level @ 1063 the trend bias was to follow the trend upwards and back towards the weekly 50% level 1079.

There is a breakout of the daily highs on Wednesday, therefore the trend is expected to continue upwards, and any further gains will now depend on 1089.50 once again, and whether the trend continues to 1102 by Friday



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