Now Reading
Watching Reindeer Games in ES.

Watching Reindeer Games in ES.

by The MoleJanuary 5, 2010

by gmak

As of this writing coming into lockup on Tuesday evening, ES is near what I call the neutral pivot. 1135 – 1136 looks like an interim area of resistance. Looks like Skynet is back with regular upward price movements starting at 2 PM. Using my predict the weather approach, and remembering what happened last night, go long at Europe open with appropriate stops. Sell after the first 1/2 – 1 hour. Come back in around 2PM to ride ES into the close. Obviously this shouldn’t be followed blindly, but with carefully picked entry points and stops. ES pivots:

  • R2: 1138 = comfortably above the upper trend line on the daily ESH0 chart. Breaching this suggests irrational exhuberance above the irrational exhuberance. A short would be a very gutsy move without proper protection.
  • R1: 1135.25 = This could be the upper barrier for overnight trading. It’s hard to say this early. But, it would be a point to look for a short entry depending on how the action is unfolding and how close it is to Europe open.
  • Neutral: 1130 =  Was resistance for the last 2 days. Probably has turned into support for a long scalp later on.
  • S1: 1127.25 = More support from the bottom end of the range over the last 2 days. If this breaks then it will break hard. Good place for a stop on a long from the Neutral pivot. Good place to think about going short if it is breached.
  • S2: 1122: I don’t see any recent support here. If broken, 1119 is the likely bounce level tonight.

But, all this is just opinion and speculation. Overnight is just too weird.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c