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Keene Little : 8/13/2006 11:13:12 PM

I can't quite figure out if ES has been pulling back since Aug 4th in a bull flag within a larger up-channel, as shown in this chart, or if instead it finished an ascending wedge which would mean a quick retrace to at least the 1245 area. Link

Futures are up Sunday night but that may not mean much for Monday morning. However, if the market holds up then we should see ES press back up towards the top of its bull flag. Two equal legs up from last Thursday's low is at 1278 so that will be a level worth watching--if this is just a corrective bounce from last Thursday we should see the 1278-1280 area hold as resistance.

But the whole pulback since the 4th looks somewhat bullish (as in not being impulsive to the downside) and therefore it's hard to recommend short plays even though we could still get a deeper pullback. But the long side looks just as iffy at the moment. It's not a bad time to stay on the sidelines. This choppy environment continues to play havoc on traders' accounts.

Keene Little : 8/13/2006 10:56:57 PM

Monday's pivot tables: Link and Link

OI Technical Staff : 8/13/2006 9:59:59 PM

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Marc Eckelberry : 8/13/2006 9:37:29 PM

I would wait for a pre- 3 AM dip and take it to the open.

Marc Eckelberry : 8/13/2006 9:36:42 PM

NQ 20 dma is support at 1497.50, resistance 10 dma 1502.50. Looks like the drop in oil could trigger a nice rally.

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