Morning Update: 2/1/2012

 

9:10 am…

The stock market indices had a mixed session at the close, similar to the day before yesterday. The day started out with a real pop to the upside on strong futures, and they reached their highs within 10 minutes. They immediately sold off, taking the NQ from 2481.50 down to 2449, and then they rallied back in a 3-wave fashion into mid-afternoon before backing and filling into the close. The ES dropped from 1324 down to 1304, and rallied back to 1315.79 by the close. As I write this update the ES has broken to the upside and is in a larger degree balance area at the upper extreme.

I had several trades yesterday 6C, NQ, GC, 6E

 

6C:  Started to take profit on this swing short from last Friday.

NQ: This was a weekly breakout trade and I’m still currently in the position

GC: Stopped out for a nice profit on this weekly breakout pattern

6E: Took profit on this responsive short from a balance area three days ago.

 

News for today…. ADP Nonfarm Employment Change, ISM Manufacturing Index.  Stepping back and reviewing the hourly chart patterns, the indices gapped up to session highs early on within the first 10 minutes, sold off very sharply, took out a couple minor layers of support, but held at the third level minor layer, and then snapped back in shallow fashion to close mixed on the session. It wasn’t the best day, and even though they bent, they did not crack. At this point, they’ll have to take out yesterday’s low down around 2448  NQ, and down around 1302 zone on ES, to be able to take out key support at this point.

 

Olof Thomas

 

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