Recap Less likely scenario occurred in beginning of the week. Downside target Y-2 tagged. Bounced right off target. Y-1 failed to hold it down. By end of the week Y-0 was tagged on June contract.
The strength in ES is exceptional due to several reasons. First reaction to Apple’s products announcement is well received based on reactions to its stock price. Second, EU and Greece b.s. continue to mess with the markets worldwide. Third, ECB is seen supporting euro. Forth, Israel (and probably other countries) is now officially buying US equities as gunmen for Fed.
This is not our normal market condition by any measure. Even back in the past few crisis, never did governments and authorities were that heavy hand in market manipulations. As I mentioned many times, if you are not comfortable with trading during such an environment, then do not touch the markets until after the dust has settled. It may take a few months. It can take a year. Once this batch of politicians are removed from their offices (which is very likely based on what we can gather from the news) before the end of 2012, we will get a much better read of this geopolitical crisis and where it is going to take us.
Outlook As long as B-0 is acting as support, another test of Y+1 is likely.
Only after a break of B-0 and that turning into resistance that B-1 is possible.
Overview
Emini overnight range 1890.25 up to 1922.25
Overnight Midpoint 1906.25
Previous Day Mid 1888.50
Emini S&P is now trading at the bottom part of its range with a gap down. ...
Lawrence's Comment
Recap
Intense fight at Y-0 for control early in the week. Bulls won the battle and led to breakout above Y+1 and tagged Y+2. Closed the week above Y+1 and ...
Overview Emini overnight range 1890.25 up to 1922.25 Overnight Midpoint 1906.25 Previous Day Mid 1888.50 Emini S&P is now trading at the bottom part of its range with a gap down. ...READ MORE
S&P 500 Mar 12 to Mar 16 Outlook
Lawrence’s Comment
Less likely scenario occurred in beginning of the week. Downside target Y-2 tagged. Bounced right off target. Y-1 failed to hold it down. By end of the week Y-0 was tagged on June contract.
The strength in ES is exceptional due to several reasons. First reaction to Apple’s products announcement is well received based on reactions to its stock price. Second, EU and Greece b.s. continue to mess with the markets worldwide. Third, ECB is seen supporting euro. Forth, Israel (and probably other countries) is now officially buying US equities as gunmen for Fed.
This is not our normal market condition by any measure. Even back in the past few crisis, never did governments and authorities were that heavy hand in market manipulations. As I mentioned many times, if you are not comfortable with trading during such an environment, then do not touch the markets until after the dust has settled. It may take a few months. It can take a year. Once this batch of politicians are removed from their offices (which is very likely based on what we can gather from the news) before the end of 2012, we will get a much better read of this geopolitical crisis and where it is going to take us.
Outlook
As long as B-0 is acting as support, another test of Y+1 is likely.
Only after a break of B-0 and that turning into resistance that B-1 is possible.
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