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CRUDE - E-MINI update

10/25/11

2:27EST

ESZ11:

We’re still in the up extension (1277.00 - 1st level)

Below 1172.50 cancels the up extension

Crude MUST clearly trade below 93.35 in order for the down move (NYSE:ES) to pick steam

1221.25 is key pivotal support (Major)

 

No major change from this previous update

9:55EST

ESZ11:

In terms of volume we just had a major break-out

At 9:38 we 55,659 contracts and at 9:39EST we traded 42,027 contracts

This week the average volume on the open (1 minute) was 8,000 contracts

It appears majority of the contracts were bought

Never the less put lines up

1235.75 and 1227.50

these are the key support/resistance levels for today

in a 10 to 13 minutes we should know what to expect

 

Now:

Therefore is must now clearly take out 1227.50, (currently below 1235.75)

On any now term declines; it’s imperative to 1220.75 otherwise expect a bounce back up

Also

This is a strong pivotal level

 

 

CRUDE:

Still in an up extension (94.78) we reached 94.65

It must take out 84.96 to cancel the up extension

Currently 93.35 is key pivotal support

Crude trades true to form regarding range movements;

Normally we have 9.40 to 9.75 point range moves;

Rarely they extend (20% of the time)

The average range extension is 10.38 to 11.01 points

The recent move up from 84.22 to this morning high is 10.43 points

Therefore we may not reach the up extension at 94.78; without spending time and price down, reaching the up extension clearly terminates this range move.

In the event above 11.01 points (range move); next level is 14.93 to 15.36 points although it could easily reach a 26.00 point range.

Currently I’m looking a move down to 89.85 to 89.19; but we have a key compression crossover at 93.12;