5 min .. trend failure @ 1346.25

5 min ES

Well the strength into the close on friday via ES futures made some sense because we moved nearly 7 handles over friday close eventually 12 handles into 1352.25. 2012 high is 1352.75

but..

I guess i was onto something this afternoon noticing support failing in euro... because..

Moody's spoiled the party shortly after regular session closing sending the ES down into 1345 as...

They  Downgraded Italy, Spain, Portugal.

Currently ES is over regular session lows of 1343.75 despite selling about 6 handles off highs post downgrade headlines. If you notice from the green dashed line on the left the 1345 level is very sticky. What i have founds the more volume a price level sees the larger the mass around the level becomes.. thus the level has a stronger gravitation pull. Interpret as you may but i think the analogy has many parallels.

My foresight on this evening and night is pretty simple we need to hold the trendline drawn from 1333.75 up to 1347.5 .. below we will see a scenario like friday evening.. uptrend broke broke around this time of evening and we saw accelerating selling as the night progressed.  trend fails we test cash session lows.. if those fail we see 1340 which was resistance most of cash session this past friday..

5 min Eurodollar futures

The weakness friday morning and day was bolstered by bonds showing risk was coming out of the index's. Same tune into the close today. Euro weak all day with consistant selling coming into the market.