Tuesday, February 24, 2009

/ES after close update

We got expected bounce (not saying that it is over - just need to have a "game plan" no matter what happens next)

What might happens from here? I am a little disappointed by the magnitude of this move, it leaves very few options - this is what I think might happen.

Bearish case: in overnight session /ES will trade as high as 778-781 and by the open (or within first 30 minutes) moves down to 768 - back into descending channel (I posted charts multiple times) - it so, chances better for downside move to the lower side of that channel.

Bullish case: /ES flat overnight, opens flat, stays flat or moves slightly lower and THEN attempts to break out of descending channel - this is my "preferred way", it will create consolidation much needed for producing last "intermediate bottom" during this or next week.

There are 2 very strong resistance areas overhead (800 and 835) - no use to move up without consolidation.

DavidDT

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