Equities Addicts Update

It’s a slow Monday and I don’t see much in terms of new setups today. Buyers on the equities front still seem skittish but selling pressure seems to have diminished a little. Of course we should wait out the session before making a final assessment of the day.

The E-Mini is currently trading in the middle of nowhere – technically speaking. We have no major support or resistance levels in reach and thus I plan to do absolutely nothing. Which means holding my remaining short positions and waiting for new instructions. The only resistance of significance is the weekly NLSL which now looms above at 1665.75.

The NQ once again the most bullish of the equity futures trifecta. I noticed that today’s bounce stopped but a few ticks from a new weekly NLSL at 3,056.75. I have also marked it on the daily for the following reason:

It’s been a rather good bounce but assuming a higher close today (pretty much baked in at this point) we’ll have a RTV-S setup tomorrow with a trigger at 3060.25 – just a few ticks away from the weekly NLSL. So – this means that the 3060 mark is probably where the bulls will make their stand. A drop below it and we are looking at further pain ahead.

The YM still weak and trading below its 100-day SMA. I’m now short with a stop above the SMA. However, I couldn’t help but notice that we are most likely going to paint the narrowest range in four days (NR4) today. That means the bears are running a bit out of juice and a bounce could be imminent. I think today’s close and tomorrow’s opening will determine the direction for the rest of the week.

Bottom line: Watch the weekly 1665.75 on the E-Mini. Watch the 3060 mark on the NQ and then there’s the 100-day SMA at 15,068. That’s the best we got at this point but it’s better than nothing. If in doubt let your winners run. You cannot bank coin by constantly cutting your winners short. At this point we need to let Mrs. Market show us her hand.

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Cheers,