Arthur Stern
10-15-2007, 03:58 AM
DAILY TRADING ADVISORY 15-October- 2007
ECONOMIC CALENDAR
8:30 AM NY Empire State Index
Weekly EMINI S&P pivots for week ending 19-octuber-2007
R3 1603.00
R2 1588.75
R1 1577.25
PP 1572.50
S1 1565.25
S2 1558.25
S3 1542.00
Buyout news on the tech sector, and a positive bunch of data, gave the markets the positive tone that we were looking for, to be on the buy side on Friday’s trading session.
A stronger than expected retail sales showed that the American consumer is still spending, no matter what is going on in the housing markets.
After Thursday turmoil, a flat opening spurs buyers to step in, and in a quiet session bring the markets higher closing above fair value. Nobody wanted to loose this “buying opportunity”, as SP futures rallied 5 points after the cash market shut down and closed above fair value.
A lot of institutional buying was seen all the way down on Thursday sell off as they position themselves for what could be another run to the highs. This week is full of economic data and we have the monthly options expiration, so I wouldn’t be surprise to see an increase in volatility.
The DOW CASH has been showing consolidation between 13950 and 14200, and a breakout will indicate future direction, but volume remains low suggesting lack of conviction.
The markets closed on an uptrend and everything is ok, if Friday’s lows can hold.
For today, if the markets open higher, look for early strength to develop during the first 20-30 minutes, and when the momentum cools dawn, take a short position with stops above the daily highs. This could be a good play but the first pullback should be bought.
Opposed to this, a lower opening not capable to reach settlement will be a bad sign on the charts, but testing Friday’s lows and holding is a bullish indication and offer the chance of at least a 10 points run to the upside.
We have initial resistance just above Friday’s settlement at 1575.50-1577.50 on the EMINI SP futures, this area is also the 61.8 Fibonacci retracement between Thursday’s lows and highs, initial resistance on the EMINI NASADAQ futures contract is at 2201.00-2203.25, if broken, a test of last week highs on the EMINI NASDAQ futures at 2208.50-2210.00, 1581.00-1582.50 on the EMINI SP futures should hold and attract sellers , please hold on longs at these levels if they are not broken firmly because failing to make new highs on the NASDAQ that has been leading the markets up, could bring another steep sell off. If those areas are cleared, 1585.50-1586.50 on the EMINI SP futures and 2218.00-2221.00 on the EMINI NASDAQ futures could be printed on the charts.
Initial support is at 1572.50-1571.00 on the EMINI SP futures and 2194.50-2192.00 on the EMINI NASDAQ futures, bellow these areas a test of Friday’s lows at 1567.00-1565.75 and 2182.00-2180.00 respectively “must” hold if the markets are in good shape. If these are broken and not reversed immediately things can be changing in the short term and a test of last week lows could be in the cards.
TODAY SUPPORT, PIVOT AND RESISTANCE LEVELS
S&P NASDAQ
Resistance 3 1585.50-1586.50 2218.00-2221.00
Resistance 2 1581.00-1582.50 2208.50-2210.00
Resistance 1 1575.50-1577.50 2201.00-2203.25
PIVOT 1569.50 2185.25
Support 1 1572.50-1571.00 2182.00-2180.00
Support 2 1567.00-1565.75 2168.00-2166.00
Support 3 1558.00-1556.50 2154.00-2151.00
S&P FIBBONACCI NUMBERS NASDAQ FIBONNACCI NUMBERS
1591.12 2243.50
1584.89 2226.88
1575.00 2200.00
1568.89 2183.38
1567.00 2178.25
1565.67 2173.12
1559.00 2156.50
1549.11 2129.63
ECONOMIC CALENDAR
8:30 AM NY Empire State Index
Weekly EMINI S&P pivots for week ending 19-octuber-2007
R3 1603.00
R2 1588.75
R1 1577.25
PP 1572.50
S1 1565.25
S2 1558.25
S3 1542.00
Buyout news on the tech sector, and a positive bunch of data, gave the markets the positive tone that we were looking for, to be on the buy side on Friday’s trading session.
A stronger than expected retail sales showed that the American consumer is still spending, no matter what is going on in the housing markets.
After Thursday turmoil, a flat opening spurs buyers to step in, and in a quiet session bring the markets higher closing above fair value. Nobody wanted to loose this “buying opportunity”, as SP futures rallied 5 points after the cash market shut down and closed above fair value.
A lot of institutional buying was seen all the way down on Thursday sell off as they position themselves for what could be another run to the highs. This week is full of economic data and we have the monthly options expiration, so I wouldn’t be surprise to see an increase in volatility.
The DOW CASH has been showing consolidation between 13950 and 14200, and a breakout will indicate future direction, but volume remains low suggesting lack of conviction.
The markets closed on an uptrend and everything is ok, if Friday’s lows can hold.
For today, if the markets open higher, look for early strength to develop during the first 20-30 minutes, and when the momentum cools dawn, take a short position with stops above the daily highs. This could be a good play but the first pullback should be bought.
Opposed to this, a lower opening not capable to reach settlement will be a bad sign on the charts, but testing Friday’s lows and holding is a bullish indication and offer the chance of at least a 10 points run to the upside.
We have initial resistance just above Friday’s settlement at 1575.50-1577.50 on the EMINI SP futures, this area is also the 61.8 Fibonacci retracement between Thursday’s lows and highs, initial resistance on the EMINI NASADAQ futures contract is at 2201.00-2203.25, if broken, a test of last week highs on the EMINI NASDAQ futures at 2208.50-2210.00, 1581.00-1582.50 on the EMINI SP futures should hold and attract sellers , please hold on longs at these levels if they are not broken firmly because failing to make new highs on the NASDAQ that has been leading the markets up, could bring another steep sell off. If those areas are cleared, 1585.50-1586.50 on the EMINI SP futures and 2218.00-2221.00 on the EMINI NASDAQ futures could be printed on the charts.
Initial support is at 1572.50-1571.00 on the EMINI SP futures and 2194.50-2192.00 on the EMINI NASDAQ futures, bellow these areas a test of Friday’s lows at 1567.00-1565.75 and 2182.00-2180.00 respectively “must” hold if the markets are in good shape. If these are broken and not reversed immediately things can be changing in the short term and a test of last week lows could be in the cards.
TODAY SUPPORT, PIVOT AND RESISTANCE LEVELS
S&P NASDAQ
Resistance 3 1585.50-1586.50 2218.00-2221.00
Resistance 2 1581.00-1582.50 2208.50-2210.00
Resistance 1 1575.50-1577.50 2201.00-2203.25
PIVOT 1569.50 2185.25
Support 1 1572.50-1571.00 2182.00-2180.00
Support 2 1567.00-1565.75 2168.00-2166.00
Support 3 1558.00-1556.50 2154.00-2151.00
S&P FIBBONACCI NUMBERS NASDAQ FIBONNACCI NUMBERS
1591.12 2243.50
1584.89 2226.88
1575.00 2200.00
1568.89 2183.38
1567.00 2178.25
1565.67 2173.12
1559.00 2156.50
1549.11 2129.63