ES Trading for 10/8 thru 10/12 2007

[Dogpile]

Summary of recent PVPs -- where support can be expected to come in...

note by the way that European markets have not confirmed the move up in the S&P's. we are due for a down day and todays gap down could spark a down auction. That said, there is support at the various recent PVP high-volume zones so this might be tricky.

[Dogpile]

slim pickings in futures. XTO looking good though.

[TinGull]

very similar chart to BHI

[Dogpile]

everyone take note of the large PVP building at 1569.75 today to go along with Fridays 1570.25 PVP...

In the recent past, I have seen some big-time selling tails develop after a lot of churning builds at a single price like this action at 1570.00....

[Dogpile]

looks like a good bull trap late....

[Dogpile]

Dalton talks about this set-up in his book... When a good 30-min buying tail forms a higher low -- that is bullish. The futures market has strong tendency to run stops above or below the recent high/low. This tendency is what makes a lower high and higher low important. If the market isn't even strong enough to run stops above a spot everyone knows there are stops... then that is a message -- we need confirmation by a break below the high-volume 1570 level. That could come in an overnight gap down.... we will see.

[Dogpile]

looks like we have moved out of the muckity muck now. getting away from 1570 was a very good thing to happen -- hopefully will open the range up as we now don't have the high-volume zones in either direction to worry about for a bit.

[Dogpile]

patience patience.... 1 trade, 1 winner... hopefully we can get some good swinging action now.