Wednesday September 15, 2010 / 6:00PM PST
Our highest weekly zone was put to the test again today as the market rallied into the close after an otherwise quiet session. The 1111/1112 zone held as support through most of the Globex session last night before being breeched just 2 hours ahead of the New York open. The 1108/1109 Weekly Zone held during the first hour of trading on Wall Street as the markets attempted to push lower. The market then established a 5 point range between 1115 and 1120 until 2:30 Eastern when the market caught a bid and ran from 1115.25 to 1121.50 which became the high of the day and also retested the 1121/1122 Weekly Zone which we published Sunday night. Price was rejected back down to 1119 where it then drifted higher to close out the session at 1121. On Globex tonight which marks the beginning of Thursday's session we are currently trading 1119.75 just above our dynamic support level. Traders who were short from the initial test yesterday and covered 12 points lower should watch carefully tonight during the Asian session into the London open for any 30 minute close below our dynamic support level as we believe that the potential for much lower prices still exist. Anyone still short from the 1121/1122 Zone should be using a protective stop at or near 1125. Any break and hold above 1122 (while not anticipated) would then present us an opportunity to trade the market higher into Friday's close.
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