Always hard to predict what will happen in the coming week, but Friday's selling at the close was a first in seven days. A cursatory glance at the media shows lots of optimism and calls for "buying on a pullback", "this is great, an opportunity to get in" etc... That always spells trouble. Bulls want to see some fear and pessimism when we correct after a sharp rally. My guess is we head lower, probably test 1368/1370 level for ES. Maybe we get one higher high at 1398.50, before heading down. I would have a bearish bias now if they keep selling the close, so watch for early rallies that fail. Support is as easy as it gets: 10 day simple moving average accross the board. Mark it and trade it. Watch NQ for a heads up.
This entry was posted
on Sunday, October 29, 2006 at 11:30 AM.
