Market Analysis August 25, 2008

[Soultrader 12]

Brief market analysis for Monday. I mentioned in a previous analysis about 1274 being a key pivot. On August 20 and 21, we tested that multiple times to finally break into the close on the 21st. Once broken, the markets rallied on the 22nd to create value placement higher.

 

 

Next chart shows potential support and resistances on a mp chart. I will look for patterns to develop around these levels.

 

 

Nikkei shows interesting sell volume on Friday. Relative low volume to new lows and a lift during the evening session to push price back into the upper half of its range.

 

 

 

Based on the ES, I am expecting the Nikkei to gap up on Monday. The key will be to understand the price action once the gap up. Will sellers step in to push it lower? Will it chop around creating higher value? All this information will be important to create strategies for the ES. (though from a mp chart, I am looking for a continuation upwards)

 

I will follow up on Monday after the Asian markets finish. Best of trading

[Soultrader 12]

Okay, following up on my previous post. Nikke indeed gapped up and tested the resistance zone created from 8/20 high and VAH. (see chart below)

 

 

Nikkei often gaps up and trades lower throughout the day. Todays session shows a hint of strength with price holding as it gapped up. Though rangeboud, we did not break to new lows.

 

Taking a look at ES... looking for setups around the 1282.50, 1287, and 1295 mark. Though not strongly bullish or bearish I will be somewhat flexible in terms of direction.

 

Chart on ES:

 

[erierambler 10]

Soultrader,

I notice how price has moved between your two lines , from 1263 to 1275 today.

erie

[OAC 10]

On its way down yesterday, the ES made quite a few single prints between 1273-1275. On the rally up this morning, those singles did not offer any kind of resistance at all. Can any MP devotee explain this to me ?