Wednesday, February 8, 2012

Post Close S&P Futures Note

5 min ES

A roller coaster of a 10 handle up and down session..... Rinse/repeat being the theme... Overnight strength turned into post cash open weakness much like yesterday and monday's opening performance....

Today's selling coincidentally concluded in the area of 1338.50 which was very close ( red X ) to yesterdays immediate high off cash open. Once the ES found its legs again after failing 1337.25 yesterday it rallied all the way into new highs as the day concluded.

Very similar action greeted participants today who recognized this pattern as the ES found her legs around 1337.75 trading up into 1347.5...ES immediate support 1340 still b/c 1345 failed very easily at start of night session. 1348.25 is the new 2012 high.

The whole index move higher was in the face of the 10's and 30's defending support .
The euro did not do much but fade from pre US session highs of 1.329 and wave around as headlines were rehashed and deadlines were missed.
DX/ZB 5 min 

I am now looking at 1.33 resistance for 6E .. if the ECB can come to a deal 1.34 could be on the horizon.. This of course would provide a underlying bid to the index's and pressure on US bond yields. the dollar as you remember is well under the 80 level (78.63) with BONDS still hanging over support which was resistance when dollar was a hair over 79. i

If TLT can move down into the 115 level this should coincide with a break higher in the ES 1352+.
116 is big support in TLT.. 115.55 is TLT's line insand. if it fails look out..

7 day 5 min ES - NOTICE the pattern