For Wednesday the pivot is at 900.50 and price is well below that so I think we could have a tough time getting above that 900 area. Expect a pullback to the 875-880 mark but again, this market is bullish so don't expect too much downside if they start to take profits as it look like they might.
Tuesday, May 5, 2009
Tuesday the markets started off negative and choppy but held the low 890s in the ES and recovered sharply into the close. You can tell the difference in the market lately versus 6 months ago. Shorts are covering into the close now afraid of being short overnight. Back in the fall it was the longs who were afraid to hold overnight and expose themselves to any announcements. That's a healthy sign on the sentiment front. This rally is still trending nicely and the close above 900 for consecutive days is impressive. I think we are still due for a pullback and it may come Tuesday as the futures are selling off to 892 tonight on news that BAC needs more capital. If we get a pullback under 890 then they might even push it back to 875ish. We have terrific support below us so I am not concerned if we just pullback a bit.