Tuesday, January 5, 2010

Key Support/Resistance Levels (S&P 500 Futures) for Wed. 01/06/2010

E-Mini S&P 500 Futures
The other indexes (YM, NQ, and TF) are showing signs of weakness, which at the very least, calls for some caution on the Long side. Holding the 1123 area on any push down is fairly important for the Bulls. I'm anticipating a bounce in the 1123-1125 area on first touch, due to nervous Bears covering their positions and over-confident Bulls adding to their Long positions. A break of that 1123 support could take us to the 1118-1120 area in a hurry. Bias is bullish above 1127; neutral to bullish above 1123 and bearish below 1122.

Econ Data
ADP Employment Report at 7:15 AM (cst), ISM Non-Mfg Index at 9:00 AM (cst), EIA Petroleum Status Report at 9:30 AM (cst), and FOMC Minutes at 1:00 PM (cst).

ES - Daily Bar Chart with Volume Profile and Key Levels
ES Key Support/Resistance Levels


  1. Hi E-Mini,

    Happy new year, I recently came across your blog via Traderfeed over the holidays. Glad I did, I really enjoy your analysis and S/R levels, thanks. Very impressive as well with your schedule, don't know how you do it but very glad you do:)

    Two quick questions come to mind in reading latest post, first any good info on the web to learn how to read Volume profile charts like the ones in your S/R posts, better. Also you mentioned how the market is building value at these high levels was bulls establishing positions. But could it also be bears establishing positions for a potential correction as well since the market has been so dull even after the breakout?

    Sorry newbie questions, but most of all thanks for all you do. Yours is one of the very few blogs I visit frequently.

  2. Hi Mike,

    Glad you're finding the content useful. My schedule is certainly taking a toll on me physically, but I'll try to keep up with everything as long as I can. Life will be better after March :)

    Regarding reading volume profile, I highly recommend you go to Amazon and order Mind Over Markets and Markets In Profile. Awesome books, and they will have a big positive impact on your understanding of the markets. If you already think Logically about the market and its participants; these books will, at the minimum, provide added confidence to your thought process.

    Regarding whether it's bulls/bears building positions here; keep in mind there's a buyer and seller involved in each transaction/trade. But since we're continuously moving higher and building volume above the VWAP; I'm inclined to assume Bulls are in control (for now). But to be honest with you, it really doesn't matter -- bottom line is, we're transacting volume higher and higher prices are being accepted as "fair value". The Volume Profile chart makes this apparent.

    Will we eventually get a correction to the downside? Of course...isn't that what always happens. For now, we have to accept the fact that the Bulls have more control than the Bears. But we also have to be on the lookout of the Bulls losing that control, and the power shifting to the Bears. Once that happens, we will probably get a big trend down day...until then, have to trade what's in front of you.

  3. Thanks great explanation, just ordered both books on amazon, can't wait to dive in!

    Best of luck with your classes and of course trading, I will be following along diligently and learning as well.

  4. No problem. Btw, read Mind Over Markets first and then move on to Markets In Profile.


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