Friday, November 20, 2009

Morning Briefing for November 20th: Watching Price Levels

In overnight trade we've broken below yesterday's lows in both the ES (top chart) and euro (bottom chart) futures. In a valid breakout, we should not re-enter the prior trading range with any meaningful volume. This morning, I'm watching to see if yesterday's support becomes resistance for today's trade. Thus far, as I write, we are back in yesterday's range in ES, but not in the euro. Failure to sustain trade below yesterday's ES low around 1086 would target yesterday's pivot level (see recent Twitter post for pivot and other price targets) to the upside.