Opening Play for Tuesday 10/21


Good Morning!

SPs made a Sell Short day lows made first with an opening gap down.  The test of the upside breakout level from Friday held and the market proceeded to rotate around the 1980 handle until an afternoon breakout drove the SPs to an area of previous highs (marked off on the chart below).  Interestingly, this is also the low volume point for the past 10 days, which simply means, this was where the market broke down and not much trading took place.  The “high volume” levels for the past two weeks are marked off in Yellow.  If 1903 area is resistance, then the market would be expected to eventually trade back down to the 1874 area. The 2-period ROC is poised to flip down and this would be the most likely scenario.  (If the SPs consolidate and hold 1890 – they would form a higher low for an eventual push back up towards 1920).  For now,  expect strong resistance in the 1898 – 1902 area and after two low to high days, ball should bee in the bear’s court for “turnaround” Tuesday.

Bonds:  another attempt at close back above 5 SMA

EC:  240 minute  Road map – full retest up or lower high

BP:  240  minute Sell Divergences

AD:  perfect equilibrium  point after large standard deviation move on daily charts.

CD:   still down trending channel on 240 minute.

JY:  9388 = close back above 5 SMA

GC: 1250.3 = 20 day high test

SI:       1245=  main trading level for past 10 days.

CL:  trading range environment after large standard deviation move.

Beans:  Buy day after two days high to low.

SP levels to upside:  1900,  1904.50,  1906

SP levels to downside:  1893.50, 1888.50, 1882, 1874

Have a good trading day!



Tradesheet from Snagit










Markets in BO Mode:

BOs from snagit