For Wednesday I want to have a downside bias. The pivot on the ES is 795 and price is a good deal below that this evening so I would think any move into that low to mid 790s area is a decent short setup as resistance is heavy there. They could push this market lower pretty swiftly so dont be surprised. There should be some decent support in the high 760s but below that and I would be looking for 741.
Tuesday, March 31, 2009
Tuesday the market rallied hard into the last hour and then fell off a cliff. I was expecting the market to be lower after yesterdays drubbing but it looks like window dressing by fund managers at the end of the quarter pushed up the market early on. It was a low volume day for the most part so I would still be looking for more downside into midweek. I think it is likely we see a test of the 765 mark if not 741 but the weekend. Assuming we hold it then we can look to get more long biased into April. But for now expect a pullback.