Feb 032011

I have a Stoxx short swing position but my focus is on daytrading right now so this is just for fun to practice analyzing the markets.

Stoxx broke above 3000 but couldn’t hold it.  It hasn’t made it to my downside target which is a 30-50% retracement of the big move up, so I still have a short bias.

On ES buyers are not willing to commit above 1300 and so far sellers are not ready to initiate beyond the middle of the previous balance area (short covering got ES back into the previous balance but sellers didn’t want to sell it lower).

What do you think will happen?

  3 Responses to “Stoxx & ES update”

  1. Buying tails on ES & Stoxx today (assuming we close higher) will almost negate my bearish bias. I say “almost” because we’re in a 3 day trading range so I’ll be watching to see how we exit this range.

    I really should stick to day trading.

  2. I think if we take a step back on ES, look at the top of the january balance area at 1295, it took many attempts during 2 weeks and couldn’t crack it, which finally led to Friday when it tested all the way to the VPOC of the previous lower balance at 70.5. It was immediately rejected so to me that says the downside business has been done (maybe its a little hard to accept because it was all covered in one day). Now we firmly broke above that 1295 high for 3 days and it was rejected swiftly as too cheap today. I would think the signs are pointing to a break higher but I guess it depends on NFP tomorrow, or the egyptians or not LOL

  3. Trader Kitteh – Excellent assessment and I agree. I have 1330 has another important area and I think we may test up towards that level before a correction.

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