Thursday, December 17, 2009

Key Levels & Scenarios (S&P 500 Futures) for Friday 12/18/2009

E-Mini S&P 500 Futures (Options Expiration / Quadruple Witching)
I'm anticipating tomorrow to be a range-bound day. We may get a small range extension to the downside, but I'm expecting the 1088s to hold as support. If you want to play it "safe", best bet would be to let the Initial Balance develop (first hour of day session), and then anticipate price to remain within the IB range for better part of the day. I'm not anticipating much of an extension past the first hour high/low.

My bias is bullish above 1093 and bearish below it. Price is currently at the initial resistance zone. If it breaks above this zone (possibly overnight), the next area of strong resistance is 1099.50-1101.50 and I am anticipating a pullback on first touch. Above that we have some resistance in the 1103.50-1103.75 area. Buying could accelerate above 1103.75. Expecting 1109.50 to hold. On the downside, I am anticipating a bounce on first touch of the initial support zone. If we break below 1093, I'm anticipating a quick move down to the 1088-1089.50 area. Anticipating 1088 to hold. Below 1088, we could see a range extension down to 1084.75. Again, be aware of options expiration and be cautious buying new highs on the day or shorting new lows -- price could reverse quickly.

ES - Daily Bar Chart with Volume Profile and Key Levels

1 comment:

  1. Excellent down side scenario, very useful & accurate!


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