Tuesday, December 8, 2009

Key Levels & Scenarios (S&P 500) for Wednesday 12/09/2009

E-Mini S&P 500
1093.50 (VPOC) is the level "in-play" at the moment. Price needs to break above that for some momentum to the up side. I'm anticipating consolidation and rotational price action tomorrow. Anticipating bounce at first touch of each support zone, and a pullback at first touch of each resistance zone. The chance of a fast move through the support/resistance zones is less likely (but of course anything is possible).

Above 1093.50
Above 1093.50, the near-term resistance levels are 1095.75 (not significant) and 1097.50. Price has already tested 1097.50, so I'm hesitant to fade it on the next leg up. I would feel more comfortable stalking a short entry in the 1099.75-1101.25 zone. We have an open gap at 1103.75 above that. Rubber meets the road at 1108 (big #).

Below 1092.50
Below 1092.50, I would anticipate a test of the 1085-1086.75 area, with a bounce on first touch. Below that, I'm anticipating a test of 1080.25-1082.50; again with a bounce on first touch.

Like I mentioned before, I'm not expecting a trend day so fading the edges is the plan for now. If the situation changes, and we get a big move in one direction, then the plan would be to enter in direction of trend on pullbacks. Trade well!

ES - Daily Bar Chart with Volume Profile and Key Levels


  1. Are you including the overnight session for VPOC? I have 1091.75 as day session VPOC yesterday. Great analysis!
    Steve / finstudent

  2. How does a trader determine a bounce off support? Your 1085 support/bounce was right on and wanted to know when do you know when a bounce is coming to fade, and when it will go right past support?

    Is it based on a retest of prior support or something else?

  3. Steve, yea I include overnight for VPOC.


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