The DEC'09 SP500 futures contract is searching for resistance and is fast approaching a major inflection points at 1067 and 1078. A strong early morning surge into this area would be the optimal opportunity to put on a hedge in front of the potential for some expiration volatility. Any trading above 1060 will be exhaustive so look for signals to jump on.
Use the 1044.25 as a momentum guide today. The longer the index is below here the more likely its in for a retreat with 1023 the initial target. This is the turning point. Hold or fold.
The trade should play out by by Tuesday and a daily close above 1067 negates the opportunity.
There is no sell signal at this time. Just the potential for an extended MKT to have a reality check in front of an event. Insurance with potential.
JS
This post supports JS Services Strategy Based Trading approach. For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary Trial.
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