Victory for the bears certainly has a pinch of sarcasm to it, but bears which have been completely wiped out and taken to the woodshed will now have to cling onto something via the “less bad” method, as bulls did since March.
Bears managed to hold ES down a whopping 4.00!!! In the face of incredible squeeze in financials, especially AIG, dollar reaching new 2009 lows and of course the still present dip hungry buyers and performance chasing funds. This might be slight sign of exhaustion in the rally.
Absolutely no technical damage done to the markets yet. The first two dip buyer levels posted in yesterdays update ended up being overnight and intraday lows. Inraday low was also marked by 2 day -3 sig level while trading below -3 1 day sigma level for that particular hour, which meant the move was rather extended and there was a decent chance of reversal, considering it happened right in the support zone, it was a very very nice setup, which I tweeted about live and made a blog post.
That also happened as all indexes reached their average daily trading range, here is the EOD summary of index and commodity trading range, as you see today was very narrow for most fx:
TFU09 112.0 -0.89%
NQU09 106.4 -0.98%
YMU09 104.3 -0.47%
ESU09 95.6 -0.40%
CDU09 84.4 0.27%
ADU09 80.0 -0.31%
BPU09 78.9 0.37%
JYU09 74.8 0.23%
GCZ09 70.7 -0.30%
ECU09 67.8 0.07%
SFU09 64.9 -0.08%
DXU09 64.3 -0.30%
Check yesterday’s daily update for support levels , those are still valid. The weekly picture is also the same.
Will be back with full daily update later tonight, hopefully will dig up some more nuggets for clues.
Follow me on Twitter @esecfutures for post alerts as well as key intraday level and technical information , which has been rather spot on lately.
Have a great rest of the day
Vlad