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ES: 10/5 Morning Update

10/5/11

6:30EST

ESZ11:

1100/1101 is the key support level in order to hold (stay up – sideways) or continue up;

it’s the now term BB, we never even the neared it on the overnight (bullish)

1096.50 is pivotal support for 1126.50

general rule of thumb

after such a move up and then sideways on the overnight session is considered as consolidation before the next move up

from 1121.50 up to 1133.00 we have various levels and forms of strong resistance

from 1127.75 to 1133.00 the resistance increases three times

Above 1129.50 we have an up extension, which often is parabolic up to 1145.50

 

In conclusion

Yesterday we developed a bottom pattern;

Pointing Down

Up Price Target: 1171.50

Down Price Target: 1016.25

Equalizer: 1094.00

Patterns pointing down on a key new low, majority of the time (83%) reach the up price target (squeeze);

Confirmation is clearly trading above 1127.75 (4hours-8hours)

It appears once clearly above 1133/1136 (daily close) it runs up to 1199.00