Homework for Wednesday 2009.01.14

13. January 2009
Comments (0)

ES - Yesterday played out beautifully.  I misspoke yesterday (or mislabeled, I should say) about the bounce level that I was expecting on Tuesday.  I said the level was a 360° move from the high.  Actually, the line was the 360° move UP from the lower pivot.  In any case, that level was the level I was expecting a bounce, which is exactly what we saw (L13, 858.25, in the chart below).  Coincidently (?), the very next level, L14 at 873, was the high area of the day.

Even though we are in a bear market, my feelings haven't changed from yesterday, that we could still see a bounce.  Tuesday's "doji day" could be an indication of just that.  I am looking at the 882.25 level for a possible bounce and thus sell level (which also crosses our decending trendline).  A very strong up move could bring us to the next level, 887.75.

ES Homework:  

 
 
6E - The Euro is becoming so great for scalping.  It seems everytime it hits one of my levels (confirmed with near-term gann measurements), I get a 8-10 tick bounce.  Gotta love it. The euro is just trucking down in its decending wedge, but has hit 1.3194 (a 360° move down), so this puts me on a more bullish side.  Look for resistance on the way up (see levels below).
 
I'm not saying we will get to these levels, but if we do, I'd expect a reversal:  Up side, 1.3402.  Down side, 1.3038. 
  

Homework

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