The pivot for Friday is 785.75 and we are well below that level tonight so I think if we even get up there its an outstanding short entry and this ES market could very well drop into the 760s. There should be some good support around 770 but below that and it could get ugly. Again, this market is free to chop around and do what it wants Friday but my bias is bearish.
Thursday, March 19, 2009
Well Thursday unfolded just about as expected. Ran up at the open to retest the prior days highs and rolled over to get all the way back to almost where we were before the Fed's big announcement. Closing up around the mid 770s sets us up for a bit more of a pullback imo. However, Friday is options ex and quadruple witching day. This happens 4 times a year and provides an additional dose of market volatility and choppiness. I tend to not even trade on these days as the risk of getting whipsawed is too great. So even though we are technically setup to pullback further they may do whatever they want with it on Friday. But if you choose to trade it here's what to look for.