Night Owls - Wednesday, November 18, 2009

We are using the same numbers on the PreMarket Planner that we used yesterday, and the resistance numbers are the same as Tuesday.  The market has found resistance at 1112.25.  By the way, 1112.00 was the low of this market in September of 2008.  Many people have noticed that the market has been unable to move above 1112.00, but very fewhave noticed that this market has failed to trade below 1100.00.  In reality, the market has been tightening around a 12 point range. Now, this can get interesting.  Because essentially, the longer a market sits in a tight range, then the greater we can expect a breakout to be.  Essentially, what this means is that the market could be setting up a big move.  Now, what does big move mean?  Many people are looking at this, and hearing the wor big, and looking at least ranges.  In those terms, big could mean 80 points.  In the more recent terms, then a big move could be asmuch as 20 points, or as little as 10 beyone either 1112.00 or 1100.00.  Essentially, the market could be in for a big move that takes the ES below the open of the week at 1092.00, or up to resistance around 1119.00.

Posted on 11/18/2009 5:08:00 PM by Chuck Crow

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