Tuesday, March 31, 2009

Window Dressing?

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.

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.


Nick said...

Hi Jason,

I've been following your blog for a short while now and as a trader working in the industry, I have to tell you that you have an uncanny ability to predict market moves with excellent accuracy! Keep up the excellent work!

Jason said...

Thanks Nick! I appreciate it. I'm going to try to get into the industry after college, any advice?

Nick said...

My only advice would be to keep up the good work and maintain your track record! Like me, your will to learn and improve comes with your love for the markets and puts you light years ahead of the competition!

Jason said...

Thanks again, I defnitely appreciate the words man!