ES Journal Archive (2006 - 2008)
- Thread starter Buy1Sell2
- Start date
- Status
Here it is.
We've been saying this all along...
15:27 TALKX Floor Talk: Selling accelerates after the major averages breach their trading range lows
The market is trading largely on technical factors this week, although there has been no shortage of headline-grabbing economic reports, earnings warnings, and automotive industry bailout news. Right now, the major averages are selling off on no obvious news, and it's likely that this has been caused by the breach of the tight 3-day trading range that the major averages have carved out since the sharp 12% rally we saw on Friday and Monday. Over the past 3 sessions this trading range had been narrowing, which often implies that a sharp move either above or below is imminent. Over the past half hour the major averages have dropped below the bottom of the 3-day range (marked by 882 on the S&P), so it looks as though this range could be resolving itself to the downside today. Note that the selling accelerated once the range lows were taken out, which is typical since so many stop orders tend to be clustered below identifiable range lows. The S&P (874 -26) is now trading just below support at its 20-day ema and Dec 5 gap near 877-879, so investors should expect some heightened volatility at this level. In short, this decline most likely was sparked by technical factors, rather than being news-driven.
15:27 TALKX Floor Talk: Selling accelerates after the major averages breach their trading range lows
The market is trading largely on technical factors this week, although there has been no shortage of headline-grabbing economic reports, earnings warnings, and automotive industry bailout news. Right now, the major averages are selling off on no obvious news, and it's likely that this has been caused by the breach of the tight 3-day trading range that the major averages have carved out since the sharp 12% rally we saw on Friday and Monday. Over the past 3 sessions this trading range had been narrowing, which often implies that a sharp move either above or below is imminent. Over the past half hour the major averages have dropped below the bottom of the 3-day range (marked by 882 on the S&P), so it looks as though this range could be resolving itself to the downside today. Note that the selling accelerated once the range lows were taken out, which is typical since so many stop orders tend to be clustered below identifiable range lows. The S&P (874 -26) is now trading just below support at its 20-day ema and Dec 5 gap near 877-879, so investors should expect some heightened volatility at this level. In short, this decline most likely was sparked by technical factors, rather than being news-driven.
Quote from Lawrence Chan:
72 target hits
It is also RTH S2.
There is no compelling reason to keep dropping either.
Edit: My preferred long term buy would be 850 area.
Lawrence,
Seeing you are from Ontario, I have an off topic question regarding a long term buy on the ES. That would be in US dollars and was wondering if you would hedge that account somehow should the dollar fluctuate wildly in the future? Or would you do nothing of the sort? I'm from southern Ontario
erie
- Status