Today's Trading Recap 10/19/09

HOW OUR DAY WENT:

Last evening I sent a bearish update,
and the day started perfectly. The ES popped up to near
the Friday high, reaching 1087.75 just 10 minutes into
the day and they dropped 5 points to 1082.75 by 10am.
However, the move reversed and when the Friday highs
were exceeded we traded both sides. The 1092.75-1093.25
area gave a scalp short but, once broken, the 1093 level
turned into important support. A pullback to 1093.25 at
around 1pm set up a trade to a 1096.75 high, and then a
double top formed. A pullback to 1093.25 with 20 minutes
left in stock trading gave a bounce to 1095.50... but
like Friday the ES and NQ both dropped a good amount
into settlement with the ES on its way towards 1088
at a minimum.

Good Trading,
Mike Reed
TradeStalker.com