Yesterday I wrote about the Sell short signal in the eMini S&Ps; if you missed that sale there was an opportunity to get short today.
Below is the daily chart for March eMini SP futures. Yesterday a mid session selloff fizzled, and they closed about unchanged. This left a doji bar yesterday and a breakout pattern for today.
click to enlarge
On a breakout day our stock reference points are the previous day’s high and low; we use a move beyond either of those points as a “go with” move. I drew the blue dashed line at yesterday’s low to show the short entry point.
The 30 minute chart for today shows today’s structure. The first downside breakout occurred early this morning, then yesterday’s low was retested about 10 AM. The inability to push back above there led to the push to today’s low.
click to enlarge
Looking back at the daily chart you can see where today’s low came in. 1128.88 is a 50% retracement of the 2010 rally; additionally there is trend line support at 1130.00 and 1128.34.
Looking ahead, and ability to hold around today’s low could lead to a recovery rally, as breakout moves often reverse field the following day. On the other side, a close into new lows would like lead to a test of the end of the year lows around 1110.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
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