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Homework for Monday 2009.01.12

11. January 2009

ES - We broke out of the lower trendline last week.  If we can re-test the bottom, we may have a good entry for a fall.  I estimate the lower trendline to be around 890.  In the levels below, we have some confluence around 892.75.  Lucky us!  However, the market may be too weak and only reach 887.75 before continuing the fall (see levels below).

 

 

6E - The Euro was hit hard on Friday and seems to be continuing downward (as I type this), however, I am cautious around these levels it is coming upon.  1.3340 and/or 1.3305 may hinder the fall.  Not to mention the levels in my homework below.  The more I study the Euro, the more I like it!  It seems to behave very well to these major levels and, in particular, levels I can generate on the fly on lower timeframes for more precise entries.

UPDATE - 12:08 CST: Homework updated with more accurate intra-day pivots. It's a bit after the fact, but selecting the correct daily and intra-day pivots (that get fed into the homework script) are critical.  The new levels line up SO much better with today's action.  A single tick difference from a major turning point in some cases.

Homework