Today's Trading Recap: 08/12/09

HOW OUR DAY WENT: The ES opened lower and then turned up
from just over the 990.25-990.00 initial support. That
set up the early trade on the buy side, and it was a
stronger move than anticipated. Then the ES trended higher
into the Fed release, and after stalling and reversing
from 1 tick under the 1008.00-1008.50 zone (1007.75 high)
the ES dropped to 1000.50 before reversing. The next
move was about straight up, going right thru 1008.00-
1008.50 zone on the way to the 1011.75-1012.50 resistance
area. The ES made it to 1011.25 and the fell to 1008.00
[old resistance turned new support] and then bounced to
make a double at resistance. Members were warned by IM:

Aug 12-15:25) mike: they just made a top 1 tick under resist,
now 1008.00-1007.75 old R must hold to avoid a drop towards
1005-1004

That set up a nice short as the ES easily met the 1005-04
target as it fell 9.25 points into the close.

Good Trading,
Mike Reed
TradeStalker.com