[Soultrader]

Market Analysis September 3rd, 2008

Nikkei remains weak from yesterday. Both days reaching new lows in the afternoon showing clear lack of demand at higher prices yet.

We had a pretty drastic range extension into the late afternoon session yesterday followed by heavy accumulation around the 12500 mark. This level will be key for the upcoming days. Once the boys who bought around this level start liquidating, we are likely to see further movement down.



July 16 low at 12650 will be the first key support level. Other than that, I have to look at a weekly chart and scroll back to late March to find any support worth mentioning. As mentioned above late March support area from 12470 - 12500 will be ultra key.

Taking a look at a market profile chart:



ES mp chart below too. Weakness will probably get transfered over to the US today. The level around 1260 - 1263 will be critical support. Strategies for today...looking for a reversal at support on the long side initially. If broken, will look for shorts. Possible resistance around the 1284 - 1285 mark as well. Happy trading

[firewalker]

Don't know much about the Nikkei... but I do track the ES:

Originally Posted by Soultrader »

ES mp chart below too. Weakness will probably get transfered over to the US today. The level around 1260 - 1263 will be critical support. Strategies for today...looking for a reversal at support on the long side initially. If broken, will look for shorts. Possible resistance around the 1284 - 1285 mark as well. Happy trading

Absolutely agree. The area surrounding 1262 has been important on several occasions in the past. If we fall back below it, it's bound to bring some selling with it.