IMO the $DJI can trade back down to 13375 area and it will still be bullish; its just testing the most recent breakout (so you'll get a lot of technical buying coming in)....The SPX is a different story though, its still stuck in a trading range between 1491 and 1514 (todays action really wasnt a breakout) its still just range trading from 5/2/07. I wouldnt be suprised if the DOW gets bought up on the dip and pushes the SP & ER2 up with em - tons of stops will be layed close above the mkt in both the SP & ER2...IMO the SP & ER2 have been topping out these past few sessions (so there should be tons of new shorts with stops around 1514+).
ES Journal Archive (2006 - 2008)
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IMO the $DJI can trade back down to 13375 area and it will still be bullish; its just testing the most recent breakout (so you'll get a lot of technical buying coming in)....The SPX is a different story though, its still stuck in a trading range between 1491 and 1514 (todays action really wasnt a breakout) its still just range trading from 5/2/07. I wouldnt be suprised if the DOW gets bought up on the dip and pushes the SP & ER2 up with em - tons of stops will be layed close above the mkt in both the SP & ER2...IMO the SP & ER2 have been topping out these past few sessions (so there should be tons of new shorts with stops around 1514+).
I agree. Nobody said the world is coming to an end, just short-term (aka intraday) trading opps.
Osorico
EDIT: It seems today's YM air pocket rally will deflate today. As of right now YM is 13460, DOW at 13422. See previously posted YM downside targets. But as always, trade what YOU see.
pit traders will get short below OR.
keep an eye on the downward trendline..
price point is 1512.25
price point is 1512.25
Most pit traders (locals) are more or less 'counter trend traders'....I'm not listening to a squawk right now, but i'm willing to bet locals were selling the past few hours on the rallys (filling/fading new 'paper' thats been buying) - capping this up move and trying to offer the market lower to cover their shorts and get long again. They'll cover their shorts on the dips to 'late paper' sellers who are going to be on the wrong side of the market (and have close in stops just above the highs).
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