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Tuesday’s Trading Levels

July 27th, 2010 Posted in Uncategorized

Good Morning Traders

If you take a look at the Weekly Pivots that I posted yesterday, you'll notice that equity index futures are all trading above their respective Pivots and above their Second Resistance (R2). We know two things from this - 1. week to week, equities are in an uptrend; 2. week to week, equity index futures are extended/overbought. When this happens, the Daily Trading Levels are most important until these markets fall back into the weekly range.

That being said, I'll be looking for a modest sell off at some point this week. From what I'm looking at, that could be today. DD reported better than expected earnings and gave a positive forecast this morning. This is providing a bid to equities however many SP and Dow components are all trading at significant resistance.

As I write this, TF U10 and ES U10 are trading 669.00 and 1117.00 respectively. You'll notice that these levels are slightly above R1 listed below. If my assumption of a pullback is correct, these two markets should lead the fall once they trade below their respective R1 levels - TF U10 668.58 and 1114.92.

If you have questions or would like to discuss the trading levels that I provide, please feel free to contact me via email at ruria@manducatrading.com or toll free at 866.312.4965 - Rob.

Happy Trading!

Daily Pivots 7/27/10
EQUITIES R2 R1 PIVOT S1 S2
ES U10 1120.33 1114.92 1106.33 1100.92 1092.33
YM U10 10546.00 10502.00 10433.00 10389.00 10320.00
NQ U10 1902.83 1895.17 1880.58 1872.92 1858.33
TF U10 673.87 668.53 658.17 652.83 642.47
ENERGIES R2 R1 PIVOT S1 S2
QM U10 80.05 79.50 78.78 78.23 77.50
QG U10 4.67 4.63 4.56 4.52 4.45

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