Monday, December 20, 2010

Emini Futures Grind Higher


from the trading desk of CFRN...

OVERBOUGHT BUT GRINDING HIGHER! Per our forecast last week, the SP EMINI today took out the weak shorts and the stop losses resting above the hourly double top at the 1242.25 level. Popping thru the stops, the market finally found resistance just shy of last weeks anticipated high of 1246.00 and this week’s Weekly Trading Zone. With a divergent market between the Dow and the Nasdaq, the SP EMINI finished a modest 3 points higher on the day. Despite a strong dollar over lingering concerns in Europe, the strength in the market came from commodities. Crude Oil and Gasoline rose on colder weather. The metals rose as a defensive move against problems between North and South Korea. They were a few of the winners today. 

Weekly Trading Zones
The 1235/1236 Weekly Trading Zone provided support on the Sunday Night Globex Session and the 1244/1245 WTZ capped the up-move on the Day Session.

S&P 500 Emini Futures / ESH1

What’s on tap tomorrow? Traders should expect the volume to be low and any surprises in the marketplace could create exaggerated moves that might not happen if we had full participation. At the trading desk we've been preaching "buying dips" however tomorrow if we get a run to the our last Weekly Trading Zone or the 1251.00/1252.00 level I think a "sell" would potentially be warranted the first time up. Watch your CFRN indicators for a set up at this level. Support should come in tomorrow at the 1238.00 level without any surprises. A surprise? A break of today’s low or 1234.00 could send the LONGS running for cover and push the market down to the 1225.00 level.

CFRN Weekly Trading Zones to watch tomorrow:

 S&P 500 Emini Futures / ES

Your mind can hold only one thought at a time.
Make it a positive one.

CFRN Staff Writers / D. Reeves - L. Burton - B. Schlichter  

Market Profile Numbers for Tuesday 12/21/10
VAH -  1244.25
POC - 1242.25
VAL -  1239.25

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