Monday, March 3, 2008

Afternoon Reversal - ES (03/03/08)





The market traded down most of the afternoon, but the 1320 low of the overnight session held. When the market reaches a low pivot or support price of a higher time frame, it is good to see how the market reacts to this price.

In the Chart above, we have only the two Moving Averages of the $TICK (10 EMA and 25 EMA). After the market tested the 1320 price, the $TICK started to trend up, as indicated by the two moving averages trading higher than the previous pivot high. We then got a nice move to the upside.



The NYSE Advance - Decline Line also confirmed an uptrending market after the test of 1320.


Charles

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