ES Trading for 10/15 thru 10/19 2007

[Dogpile]

<<Is that a spreadsheet or came from a piece of software ?>>

spreadsheet I keep by hand. keeps me away from buying right into significant resistance or shorting right into significant support.

[OAC]

I am looking at the longer term cash chart, it looks like we are finding support
at an Action/Reaction line here. There should be a nice bounce tomorrow.
On the other hand, if we gap down and have an open drive down early on, then a lot more selling can be expected.
Also a directional day is possible tomorrow after today's relatively symmetrical profile

[Dogpile]

just a miserable session today.

monster volume built (95k contracts) at 1548.00. This is the highest volume PVP in weeks by a large margin.

[OAC]

Today's overhead resistance zone for ES: 1563-1566

[OAC]

	Quote:	Dogpile
	monster volume built (95k contracts) at 1548.00. This is the highest volume PVP in weeks by a large margin.

I am glad to see all that volume yesterday. There was a reason why CD leg
didn't quite make it to the length AB as I pointed out in one of my post yesterday, it was held up by this big support line I was talking about.
The situation was much like being squeezed between two major moving averages, all that volume means is that it is building up large amout of potential energy like a spring being wind up, once release. Watch out.
And Dogpile, pay attention to your flag.
Hopefully today will be a patriotic day.

[darthtrader]

I shorted the gap back to 55. An auction between 55 and 60 would be nice, doesn't look like thats happening though.
This area below 55 looks like a mess to me.

[OAC]

Alert!! Breaking Major International News

[OAC]

	Quote:	darthtrader
	I shorted the gap back to 55. An auction between 55 and 60 would be nice, doesn't look like thats happening though. This area below 55 looks like a mess to me.

Why is it messy below 55?
We have Yesterday Value Area High= 1552.50 and POC= 1550.5

[darthtrader]

well messy for my limited experience i should say. this is also that chop area from 2 weeks back, just seems like a pretty uncertain area right here.

[OAC]

Today's high barely overlap the low of 10/11/07 at 1556.5. If last Thursday's selloff was wave 1, today's high could still qualify as a wave 4 high.
One of the definition of an impulse wave is that wave 4 correction cannot exceed extreme of wave1. Also since wave 2 was a simple ABC correction, we have potential of developing a complex wave 4. Sp with major international news in the background, we need to monitor this carefully