Violently Sideways | Emini Zero Sum Week
(QQQ)(DIA)(GRPN)(FB)(SODA)
by DeWayne Reeves
Emini Futures Zero Sum Week
The high of the week came early Monday at our Weekly Trading Zone 1421/1422. This area was not tested again until Friday morning when America awoke to the joyous news that high unemployment was a thing of the past. (until revised)
As the week progressed our Weekly Zone at 1408/1409 became the center of gravity for the markets with our 1415/1416 Zone acting as resistance until the Friday rally when it once again became solid support.
From Zone to Zone to Zone... that's how the market rolls.
S&P500 Weekly Close
As mentioned in the Sunday night Tweet and also on the chart above from Friday, we did have the "short lived spike". How short? To the naked eye it would appear that it took an hour for price to advance from the 1408/1409 Zone up to the 1421/1422 Zone. Even though an hour would be considered "short-lived" in the grand scheme of things, such things are not always as they seem.
To find the answer to this market riddle, you would need to drill down to a 30 minute chart. When that didn't work you would drop to a 15 minute chart. Severely perplexed you would then be forced down even farther to a 10 and then even a 5 minute chart. At this point you are convinced that your charts and / or data feed must be broken. Relax...
S&P500 3 Minute Chart
Mystery solved. The market showed more volatility in 3 minutes on Friday than it showed all week. Once the dust settled the closing tick for the week was 1417.25. The opening tick for the week was 1413.25. That gives us an effective weekly range of just 4 points inside a lot of bluster.
Which brings us right back to the opening Tweet of the week last Sunday night...
Week ahead looks to be a bumper to bumper grind. Cliff rhetoric may provide short lived spikes. Otherwise - violently sideways. $ES_F $YM_F
— DeWayne Reeves (@CFRN) December 2, 2012
Looking Ahead
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