Monday, March 16, 2009
Every Rally Has Its Thorn
After a euphoric gap up in the morning we hit a high of 771 on the ES, which was roughly 105 ES points up in the course of a week. The market is due for a pullback and did so in the last half of the day. Now the focus turns to seeing whether this is a small retracement of the prior advance or the next leg down. I honestly have no idea, lol, but I will let the charts tell me. I'd like to be a bull and say we blow thru 800 this week, but of course that would be hope talking.
So now I am looking at that important 741 support level and seeing if we hold it. If so, then we could really gain some steam as its expiration week and those have historically been somewhat bullish.
For Tuesday, the pivot point is 757.25 and will be the line in the sand. With price closing in the low 750s today that means it might be a difficult to get over the pivot and the first attempt at it should be faded. If we do not get over that pivot then I fully expect this market to retest 741. If it holds is another question.