Thursday’ Market Update …

October 29th, 2009 Posted in Uncategorized On Tuesday I wrote the following analysis about the relationship between the Dollar and the mini SP:

"Conveniently enough there is resistance at these levels (DX Z9 10/27/09 close 76.415), all the way up to $78.60. Remember longer term downtrend in this market is still in tact.

Why convenient? Because the S&P (ES Z9) finds support at 1050/1060 level, which is within 10 pts of today's close of 1060.25 - and longer term uptrend in this market is also intact. Also note that ES Z9 recently broke out from within this same range (approx 1055/1060 on 10/8/09) to make a 3% move higher. Yes, you can infer that I feel a bouncing coming."

Conveniently enough, I was correct! As I write this index futures are:

ES Z9 1059.75, +20.75;  NQ Z9 1705.25, +25.25;

YM Z9 9873,+162;  TF Z9 576.70, +10.60

Much of today's strength is coming from a robust increase in GDP of 3.5%. The other part comes from the weakness of the Dollar following another weekly jobless claim number over 500K ... another 500,000 people lost their jobs last week.

It looks like we'll be closing on the day's highs for equities. But we'll need another advance and positive close tomorrow  for this rally to resume.

I'll be looking to see if ES Z9 closes above or below it's weekly pivot of 1085.33. Right now it's not looking good. If we don't the end of this run may be near.

If you're interested in receiving the complete version of my pivot and trading levels via email please contact me at ruria@manducatrading.com or call toll free at 866.312.4965.