Today...

could easily close green as well. This overnight 28 point wave down was stopped at ES1236, six points higher than yesterday's washout. As long we hold the ES1236 area this morning, we should keep grinding higher for a couple of more days. And if ES1236 can hold, the overnight raid is actually bullish very short term in my opinion...it would have established a higher high, relieved some more selling pressure, and made it less likely that we'll face yet another big selloff in the next overnight session. Still holding calls from SPX 1246 cash....and still looking for 1270s at least before selling them. Further out this market looks extremely weak and should break yesterday's lows and move quite a bit lower I think.

Here's what I had for ES today... the trap door gave way about 5am ET at 1252.

Overnight ES could only bounce to 1257.75 and then we saw a big downdraft as the market opened taking ES down very hard and under our projected support at 1239-43 as ES PLUMMETED from 1252 down to 1233 in an hour's time and on the strongest volume of the day. ES managed to rally on lighter volume into the close and make a high of 1258, but once again it looks like the futures is not quite excited about the higher prices we saw into the close or we would have seen much more volume. Short term that test is still available at 1264.25, and we would expect 1252 to be an important support now with a possible trap door underneath it.

1270 might be tuff on a rebound. looking for strong congestion on any bounce at that 1265.

In the meantime, ES low from yesterday is WIDE OPEN for TESTING....

1233

Here's what I had for ES today... the trap door gave way about 5am ET at 1252.

Overnight ES could only bounce to 1257.75 and then we saw a big downdraft as the market opened taking ES down very hard and under our projected support at 1239-43 as ES PLUMMETED from 1252 down to 1233 in an hour's time and on the strongest volume of the day. ES managed to rally on lighter volume into the close and make a high of 1258, but once again it looks like the futures is not quite excited about the higher prices we saw into the close or we would have seen much more volume. Short term that test is still available at 1264.25, and we would expect 1252 to be an important support now with a possible trap door underneath it.

1270 might be tuff on a rebound. looking for strong congestion on any bounce at that 1265.

In the meantime, ES low from yesterday is WIDE OPEN for TESTING....

1233

Macro, We could lower in the IT but like you said we are due for a bounce, after today or tomorrow. I bought QQQ Augsut 56$ strike calls. That is 1st round, will buy more to DCA if goes lower. Qs are the strongest holding there, so they should be the ones who should bounce more.

Bounce should be the good opportunity to buy puts.

Edited by DrSP, 04 August 2011 - 09:29 AM.

1278 tops this, and for me-even 1278 is an "if", imho. Better chance we are done right where we sit-or 5 points higher.

And, done we were.