Wednesday, January 4, 2012

ES Futures End-of-Day Review 01/04/12

The 15 and 50 period EMA's on the $TICK chart helps to keep me out of trouble - sometimes.

Looking at the ES 1-minute morning session chart above, the $TICK trend as indicated by the moving averages stayed down as the market traded past S1 and S2. We did get a bounce off of S2, but it then traded past this line. The whole time, the $TICK stayed in red or down territory. According to the $TICK trend, there was no reason to go long at S2.

Compare this with the afternoon session, when the market tested S1 on the bullish side. The market changed direction to the upside on a bullish test of S1. This time the $TICK did go into an up trend indication and gave us a 3 point move to the upside.

Today the market did find support near the 12/27/11 - 12/28/11 highs. It finished inside yesterday's range.


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