For Tuesday I would be expecting further selling and a test of 900 on the ES futures. The pivot is at 910.25 and price is a bit below that tonight. If the market loses 900 then it could be headed back to 875 this week as options expiration is on Friday and really could exaggerate the move in either direction. Although I am expecting this market to pullback, if we hold 900 and grind higher then I still think 950 is not too far away to tag sooner or later.
Monday, May 11, 2009
Buy The Dip?
Monday we saw a gap down in the market and it never really recovered as we closed near the lows at 909 or so. So is this a buyable dip? I think it is. We are in need of a pullback but as long as its shallow and is tough to push lower then the buyers will emerge. There is good support below here at 900 and then again down at 875. I would prefer if we held the 875 on a retest as that was the last big resistance the market consolidated beneath before breaking out higher. Over the next week we could very well consolidate or go sideways and that would count just as well as a pullback. Time is just as important as price in the markets.