Thursday, May 7, 2009

Profit Taking

On Thursday the ES hit a overnight high of 929.50 and then sold off into the 900 area where it found support and bounced into the close. It was pretty bearish today looking at the daily candlestick on the charts. We formed a ugly little candle that should give us a multi-day pullback imo. 900 is good support but we even have room down to 875 before any big support comes into play. We are definitely overdue for some profit taking so that's what I will call it.

For Friday I would be expecting more downside and it looks like the jobs report is setting us up for that as the ADP numbers were a bit too optimistic. The pivot is 899 for Friday and price is higher tonight but if we lose that pivot then I doubt many longs wanna hold on into the weekend so we could see some pressure to sell. I am still bullish longer term into the summer but a multi-day pullback is probable so prepare for that. Trade safe.


Anonymous said...

This is a great picture of Trish.

Jason said...

haha indeed.