S&P Futures E-mini 9th August 2011 recap

Support Tuesday’s lows, & two resistance levels intra-day (14 points)

If above 1120 then it’s retesting the Daily 50% level @ 1246, which matches Monday’s breakout :- Resistance 14 points.

Note:- don’t short above 1246, as the market will continue upwards, as part of it already reaching the August lows


S&P Weekly and Daily cycles

There were two patterns at play today…

Either the market was going to remain range bound below 1120 and retest Tuesday’s lows, find support, and then close higher

Or it was going to continue upwards and retest Monday’s breakout and form resistance @ 1246, which it did, providing two 14 point reversal patterns.

However, with the S&P moving down into the August lows @ 1115 quicker than expected, there was always the potential for the market to bounce and follow the original pattern of retesting the Weekly 50% level, as part of a large counter-trend move upwards.

My view was that it was going to happen next week, but it looks like it happening this week.

Any further gains in the short-term will see the S&P continue towards the 3rd quarterly level @ 1208.50, and maybe as high as the Weekly level @ 1239 by Friday












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