August 28, 2008 Market Analysis

[Soultrader 12]

Interesting day for the Nikkei and more to come on the ES. Interesting because we are seeing price rejection above a 2 day overlapping value area. Yesterday the US markets closed positive with higher value placement. Nikkei gapped up only to be rejected swiftly creating a single print tail. (see below chart)

 

 

 

A bit of weakness in my opinion going into the US session. 1274 - 1276 will be key support area and a possible pivot for today. (looking at short side today) Red zone (Chart below) shows ultra key support level as well. Just looking at the mp chart we see a rangebound market.... 8/25 is showing a potential long liquidation.. yesterdays profile may indicate short covering. Notice the 8/22 profile (break from its 3 day overlapping value).... then a liquidation on the 25th (b profile), fairly balanced on the 26th and a "p" looking profile on the 27th.

 

[gooni 10]

I'm curious as to how you determine your SR zones Soultrader. The red support zone at the bottom of the market is obvious. Are the rest just areas that overlap many profile extremes and value area boundaries?

[Soultrader 12]

I'm curious as to how you determine your SR zones Soultrader. The red support zone at the bottom of the market is obvious. Are the rest just areas that overlap many profile extremes and value area boundaries?

 

Pretty much... I use levels like pivots looking for cluster areas with mp levels and professional levels like low/high, etc...

 

The levels have a range of a few pts... so basically looking for how price reacts at these areas.