Stock, Option and Futures Trading
July 28, 2011
After we see how tomorrow closes we will have a better idea on what next week should look like. From our 78% timing high we have went straight down. the ES is now getting into the next pattern support at the 1274-1276 zone. The NQ,TF,YM and ES all look a little different here so the question is which one is leading and which ones are lagging?
Tomorrow we could find support and have a short squeeze. The only thing holding that back is it will be Friday and we are coming down into Fridays open which means there could be more selling tomorrow with traders not wanting to hold over the weekend. For the next week the market will most likely be emotional no matter which direction it goes.
We are watching the $VIX and until the $VIX hits 27 the market will most likely be back and forth meaning; obvious lows are probably not the best place to enter a trade. Obvious levels mean that more people are trading the level which means there are more decision being made. We broke the 1291 so it looks bearish but again that is a obvious level and just from that obvious level we could get a short squeeze and stop out all the people who shorted that level.
Keep a eye on the support levels for tomorrow.