Stock Observations:
By Daniel at 22 December, 2009, 2:49 pm
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The ES futures printed a high of 1115.75 this morning, several times on the 5 minute chart, and that established a significant high and a significant pivot………I am talking short term here at least, as this is on a 5 minute chart……………
Also, the ES has moved down 4 points from that high since we reached those lofty heights…………..in a normal market, that 4 point move would signal that the high is in for the day………….
In addition, in a normal market, after a trend day, you will often see a sideways day………..A sideways day tends to expand the range after the opening in BOTH directions…………
The market expanded its range to the upside this morning, but is yet to expand its range to the downside……………
We will watch and see if it does…………huh?
Are we having fun yet??
The market study, if you want to be a lifetime student of the market (and that is what it takes)…………….is “an inch wide, and a mile deep”
All the best!!
edit: p.s., Expanding to the downside means we need to see a lower low than occurred in the first minute of the opening session, when we printed the low for the day session so far……………….that is, we need to print below 1111.00 on ES to expand the day range to the downside…………let’s see if we do that……
Again, all the best!
- fishhook
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