S&P (e-mini ) 20th April 2011 Daily recap.

Resistance:- 1317.75 :- 8.5 to 14 points

Support 1304.

We can see the Weekly highs have a 'drop' formation (lower highs than the previous Weekly highs), often when the previous day doesn't continue down but instead move upwards, the rest of the week can continue to move towards higher highs by Friday

Price will need to move above the Weekly 50% level, and then breakout of the 5- day highs...

S&P Weekly and Daily range

At the start of the globex session that market was below the Weekly 50% level and channel highs @ 1317-1319...

 therefore the initial expectation is that price will try and move lower 8.5 points, and possibly retest the lower channel @ 1304 (14 points), which matches higher timeframe support levels.


However, as pointed out in the report, I’ve seen these patterns rally towards higher highs by Friday, with the first move above the Weekly 50% level, and a continuation towards the Weekly highs.

These Weekly highs are seen as random resistance (1335), with a possible continuation of the trend towards the April highs next week.



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