Friday, August 14, 2009

Morning Briefing for August 14th: Testing Highs


Here you can see that the ES contract has been trading in a narrow overnight range, with several attempts to test yesterday's price highs. (See this post for important context). We're seeing some relative weakness in the NQ futures, a short-term range bound U.S. dollar vs euro, lower interest rates, and crude also trading within yesterday's range. Failure to breach and stay above the highs on this morning's economic news would target yesterday's pivot level (see Twitter post for profit target levels); a move higher on solid breadth would be an important upside breakout. I'll be tracking the Russell 2000 index particularly closely to see if we get such a strong breadth move. If NQ and Russell are underperforming ES and breadth is unimpressive, I would anticipate trading within the recent multi-day trading range.
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