S&P 500 Emini futures 8th August 2011 Daily recap

Trend guide 1169.50 (whilst above expectation the market is moving up into the daily 50% level (8.5 to 14 points)

High risk trading longs below 1144 (Daily and Weekly lows)

S&P Weekly and Daily cycles

Early rise upwards during globex trading hours (14 points), and as noted in the Weekly report, my view was that the market would swing back towards the Weekly levels (resistance) over the first 2-days, and then continue back down.

However, I didn’t know how the market would respond to the downgrade, and it responded with a breakout of the Daily and Weekly lows @ 1144, and a move down into the august lows @ 1115

Continue below....

S&P Primary and Monthly cycles

As per Weekly report…..


"the trend can often drop down from those levels and continue down into the August lows later this Month @ 1115…Those August lows, will once again be another long term swing point (BUY), that should see the market stabilise and move upwards into a large consolidation pattern for the rest of 2011"


The speed of the move down into the August lows has happen much quicker than expected, and the price action doesn’t warrant the market finding support at these lows and moving into the consolidation pattern for the rest of 2011.

Any upside from these levels will need to confirmed after this 5-day cycle, as I wasn’t expecting a large 3-5 day counter-trend move until next week.

That means the trend can continue to drop down into the 2011 lows @ 1045, whilst 1069/1073 so act as resistance during the current 3-quarter.






Posted by