Monday, November 23, 2009
Morning Briefing for November 23rd: Staying Above Key Levels
The purple horizontal lines show some of the price levels I'm focused on this morning in the S&P 500 e-mini (ES) futures. We broke above the 1095 resistance area overnight on good volume and momentum, supported by a weaker U.S. dollar and stronger commodity prices. After some consolidation, which held the area just below 1100, we broke higher still and have so far held above that consolidation high around 1102. As long as we continue to see dollar weakness and firm commodities and ES prices holding above that 1100 area, the bulls should control the session and have us making a stab at the highs from early last week.
Failure to hold above that 1100 consolidation low would signal a reversal and keep us in the trading range defined by last week's highs and lows. Volume at the market offer has so far exceeded that at the bid, supporting the bulls.