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Homework for Monday, 2009.06.01

31. May 2009

Monday is the first day of the new month.  Therefore, as per my trading rules, I will avoid gap plays tomorrow.

We are very close to the 200 dma once again.  It is currently at 925.50.  This is also right where the daily fork's median line is.  The ES is close to a double top, but the NQ is already at a double top (thanks for the heads up Oscar).  The rule goes, sell a double top, buy a double bottom.  Even though the ES's indicators are bullish, the NQ leads the ES, so we can't ignore that situation.

Based on the resistance I'm seeing, I feel we are at a "do or die" area. If we fall from here in the overnight action, I am going to expect resistance if we return up here at the 925 area again.  If we rally above 927.75 (Friday's high), then I feel that opens the door for an even higher move.

Rally UP resistance areas: 929.50 (recent pivot high), 933.25 (1.272 fib extension 3/06 lows to 1/28 highs), 942.75 (1/06 high)

Dip DOWN support areas: Gann levels outlined below, 903 (descending fork), 894.50 (ascending fork) 

Below are the relavant Gann Levels for tomorrow.  Since we are so close to the top pivot (929.50) there are not many Gann levels between here and there.  Note, my script is saying "5/32", which should be "6/01".  Looks like I have a bug! 

 
 
UPDATE: Pre-open.  I completely missed this as one of the targets.  We went right to the fib ext target of the most recent rally (937). So far. The next res above that (as mentioned above) is the 1/6 high of 942.75.  Then the 1.618 level (from chart below) at 952.75.
 
 
 
 

Homework