Quote from lurefo:
Back from a long weekend, position was closed on Friday's close at BE as there was no strength for a move up into the close. I'm still flat.
From a swing/position timeframe perspective, I'm contemplating taking a small long - probably on the NQ - for the following reasons :
- Possible W formation on the ES around the 740 area
- Successful test of the lower daily channel in which the NQ evolves since the 11/21 lows
- Successful test of the strong NQ 1151.75 support/resistance (low of 24/10/08 and major supp/res area since)
- Huge open gaps (2/17) still to be closed on both indices
- Today's bounce is V-shaped, showing a strong momentum for an up move
Entry: the position will be scaled in a the close and/or on a retrace or a break out tomorrow
Targets: 1204-1226 (02/17 gap) / 1287 (yearly highs) / 1386 (swing high before the last Nov08 leg to the bottom)
Stop: 1125.25 below yesterday's low
Notes: if the above points are invalidated, that will be a very strong signal to short the market. Also, market has not closed yet so any reversal can come in and take us down to new lows, thus invalidating the above points. The market may as well finish in a short squeeze rally and show some more strength for an upside move.
