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Wednesday, June 29, 2011

Caught in the middle...YM, ES, NQ & TF

After their mid-June dip from the year's highs, the YM, ES, NQ & TF have bounced up to their 50% Fibonacci retracement level (broken blue line), which also happens to co-incide with the "mean" of their regression channel (broken yellow line) as shown on the 4-hour chartgrid below. As well, the YM, ES & NQ are now trading around their falling 200sma (pink), above their 50sma (red), and above their Monthly VWAP (solid blue)...the TF is trading above both moving averages and Monthly VWAP.


We'll see where price goes from here and whether or not this was just a "dead cat bounce."

Overlayed on the Daily charts of the grid below of the YM, ES, NQ & TF are Monthly Volume Profiles...the horizontal red lines represent the POC (point of control) and the horizontal blue lines represent the High and Low Value Levels (VL'S) for each month. The YM, ES & NQ are trading above June's POC, below May's Low VL, and around June's High VL...the TF is displaying more strength relative to this indicator on this bounce and is trading above June's POC, above June's High VL, and above May's Low VL. Price on all four e-minis is currently trading weaker relative to May's POC, but stronger relative to June's POC, thanks to the boost in the markets the past three days....we'll see  how they close out the month tomorrow in this regard.


Overlayed on the Daily chartgrid below of the YM, ES, NQ & TF are Monthly Pivot Points (PP)...the horizontal blue lines represent May's PP's and the horizontal yellow lines represent June's PP's (N.B. June's PP's are still subject to price fluctuation until tomorrow's close). All of them are trading below May's PP and are now above June's PP, thanks to today's continued advance...at the moment they can be considered bearish relative to May's PP, and neutral relative to June's PP...we'll see how they close out the month tomorrow in this regard.


The Financials gained some ground today as seen on the 4-hour chartgrid below of GS, C, XLF & JPM. Any further advance in the markets would need the continued co-operation of this group, imo.


If I didn't know any better, I would have thought that it was an IPO day for V and MA...Pac-Man on "coke extra strength"...


Meanwhile, the EUR/USD has popped above horizontal resistance and is retesting the upper portion of its rising triangle formation in after-hours trading today on this chart below...each candle represents 3 days, and the current candle closes tomorrow.


So, are we ready to coast in "neutral" until the long weekend...or continue this crazy roller coaster ride? Fire up the barbie...we're nearly there!