On Tuesday ES bounced from its first major support line (9-day ema) and held up for closing. Even though the upside momentum was not as strong as before, at least it regained most of the loss from Monday’s trading.
The election is on the way, and many unexpected movements will show up during the trading session. So far it is very clear that the U.S. government wants this market to hold up and is actively intervening. So don’t bet against it, especially before the end of the quarter on Thursday.
As long as 1129.50-26.50 range holds up, the trend will remain up and stay up for a higher level. Just be patient. We haven’t seen the C top yet.
ESZ0 Daily chart
Trading strategy for Sept 29, 2010
ESZ0 Intraday – 60-minute bars
On the 60min chart, ES went sideways in a self-correcting movement. Today the upside momentum could pick up fast and push price up to 1149.75-50.50 (scalping short) or higher up to 1155.50-58 range (short entry) if 1139.50-37.50 range is held up during the overnight trading. A key range is 1144.50-43.75. A failure to breakout this range, but instead breaking down 1137.50 would lead to the 1133-31 range (long entry) being retested one more time
To see more of Nat’s market analysis, visit www.naturus.com. Free registyration required.
