Seeing alot of activity and popularity in the Forex forum I decided to do a similar thread starting with Week #7 for the emini futures.
I want to begin with the YM starting from a daily chart. On the daily, we are still in a uptrend but the steam is clearly running out. We are still respecting the trendline and the 12600 level will be extra key.
What concerns me is the decreasing volume on the past couple rallies. We are seeing more volume on the sell-offs. This is a warning signal.
The chart below is a 30min YM chart. We did see a nice double top around the 12730 level. Friday met resistance at a key level of 12700, also a gap fill from 2/7/07.
A couple of levels I will be looking for from Fridays sell-off. The chart below shows the fib retracement levels. 12633 shows the 50% retracement and 12648 shows the 61.8% retracement.
Also want to point out a few
VPOC from a market profile chart. These areas will be ultra key to watch until they get violated.
Open
VPOC's
12722, 12687, 12547, 12501, 12450
My reference point for the week will be the key 12580 level. This was a
VPOC from January 31st, 2007 which got filled last Friday. The monthly pivot is also at 12583 and will be a good level to watch.
Quick plays at the open for the YM:
Overnight session meet resistance at the PP/daily pivot at 12630ish. The weekly pivot is at 12640. Anything to the upside will need to take out this 12640 level. I will most likely go long above this level as I do not see any resistance until the
POC and R1 level at 12687 - 12688.
