EMINI S&P 500
Posted by Matt Reynolds
on Monday, 30 April 2012
in Derivative Concepts
Matt Reynolds
http://derivativeconcepts.blogspot.com/
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The emini sp is currently in a key price range with the bottom of the range falling at 1387.50 and the top of the range at 1408.25. This area is the persistence zone on the weekly profile within Derivative Concepts proprietary trading method called Zone-Trader Philosophy, and it represents where the fight is the greatest between the bulls and the bears. Today the ESM12 opened inside this zone suggesting there is no control bias and the bulls and the bears are currently fighting for control of the market on the week. This tells us traders to expect an increase in volatility and a whipsaw price action, which will lead to stops being run on both sides of the market. The Zone-Trader Pivot on the Monthly Profile is currently falling at 1393.00, since this is the point of control we can utilize this price level to determine trade direction. If the ESM12 is above 1393.00 and making new highs look for buys on the short term, if it is below 1393.00 and making new lows look for sells on the short term. This should help keep day traders on the right side of the market over the next few trading sessions. Also take note of the half and quarter lines that fall within this zone which is designated in orange as they will play a role in support resistance and direction as well.
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