ES Futures - End of Day Review 11/20/09

The market closed above today's Point of Control, but just below yesterday's. Still qualifies as a bottoming pattern.



Maybe once or twice a day we may see a divergence with the NYSE Advance - Decline Line. Just after 1430 ET and a test of yesterday's Point of Control, the futures faded back a few points. However, the Adv - Decl Line corrected to a lesser extend showing underlying strength in the cash market. Around 1530 ET, we got a pop to the upside.



The 1 minute chart shows the fade from resistance, and then the pop to the upside in late afternoon trading.

Charles

ES Futures - Morning Session 11/20/09

We do have a more narrow range today, with the market spending most of today staying in the bottom half of yesterday's Value Area. Any bottoming process, if that is what's happening today, can be frustrating. The market will keep testing the lows until there are very few sellers left.

Today I see more bullish divergences than bearish ones. The $TICK moving average on the longer term chart is making higher lows. I expect the market to stay in this narrow range today. Next week is statistically bullish.

Charles

ES Futures - PreMarket Review 11/20/09

Early morning trading sent the market past yesterday's Point of Control, which is now resistance. The market dipped below yesterday's low, but snapped back just above that level. We will have to wait and see how the first 30 minutes of trading react to the overnight low and yesterday's low.

Charles

ES Futures - End of Day Review 11/19/09

This is actually a bullish pattern, especially with the close above today's Point of Control.



We should see a more narrow ranged market tomorrow.



This type of day is different than last year. Last year the market on a day like today would have closed near the day's low. Not much action this afternoon. The VWAP Line acted as support and resistance, mainly because there wasn't much else around to act as support or resistance.

Charles

ES Futures - Morning Session Review 11/19/09

The market has dropped down into the next lower zone.

Not much analysis here. Another freight train, but this time in the down direction. As with most strong trends, the market is staying below its VWAP line.

Charles

ES Futures - PreMarket Review 11/19/09

Over the last two days, the market was unable to penetrate Monday's Point of Control. Today we are starting with the market at or just below yesterday's low. The 0830 ET Jobless Claims Report lifted the market 2-points, but it still looks weak.

Charles

ES Futures - End of Day Review 11/18/09

Almost an identical day to yesterday. Once again, the market closes above the Point of Control of today and yesterday.



As the market tested the morning low, it showed reluctance to trade up. Traders were hoping for a lower low, possibly with a $TICK divergence. However, the market just could not make it quite that far down.

Charles