In this post:
1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini Mini S&P 500 Futures Chart
1. Market Commentary
Volatility remains high and what I wrote the last few days, still holds:
As far as the daily chart, I am now confused again….I got tempted on the short side and got burnt very quickly today….Once again there is a CASE for both sides, bulls and the bears and the potential for a BIG MOVE EITHER WAY is greater than normal as we are sitting on important price levels in the SP500, which has been the leader for the rest of the markets as of the last few weeks.
GOOD TRADING!
2. Support and Resistance Levels
| Contract (Dec. 2011) | SP500 (big & Mini) | Nasdaq100 (big & Mini) | Dow Jones (big & Mini) | Mini Russell |
| Resistance 3 | 1241.73 | 2395.75 | 11750 | 728.90 |
| Resistance 2 | 1228.52 | 2364.25 | 11638 | 714.60 |
| Resistance 1 | 1219.13 | 2331.50 | 11555 | 704.20 |
| Pivot | 1205.92 | 2300.00 | 11443 | 689.90 |
| Support 1 | 1196.53 | 2267.25 | 11360 | 679.50 |
| Support 2 | 1183.32 | 2235.75 | 11248 | 665.20 |
| Support 3 | 1173.93 | 2203.00 | 11165 | 654.80 |
| Contract | Dec. Gold | Dec. Euro | Nov. Crude Oil | Dec. Bonds |
| Resistance 3 | 1656.9 | 1.4046 | 90.46 | 141 4/32 |
| Resistance 2 | 1642.9 | 1.3942 | 88.79 | 140 19/32 |
| Resistance 1 | 1632.6 | 1.3858 | 87.56 | 139 23/32 |
| Pivot | 1618.6 | 1.3754 | 85.89 | 139 6/32 |
| Support 1 | 1608.3 | 1.3670 | 84.66 | 138 10/32 |
| Support 2 | 1594.3 | 1.3566 | 82.99 | 137 25/32 |
| Support 3 | 1584.0 | 1.3482 | 81.76 | 136 29/32 |
3. Daily Mini Mini S&P 500 Futures Chart
So while I am still “confused on the daily chart, “swing trading set ups” I decided to share with you how my intraday chart looks like. When it comes to very short term trading, I am a fan of incorporating volume charts. The chart you see below is the 10,000 volume chart for the mini SP from the last part of the trading session today.
My theory is that when it comes to short term day trading, volume is much more important than price, hence the use of volume bars. I use bars of between 500 to 13,000 contracts traded (based on specific market, recent volatility, trade volume and a few other factors). That means that instead of bars completing based on time frame (i.e. 1 minute or 15 minutes etc.), we use volume. So each time X amount of contracts traded, a new bar will complete. When market is fast and volume is pouring into the market, the bars will complete faster. When market is in low volume, not much action, the bars will complete slower and perhaps filter out some noise.
Would you like to have access to my DIAMOND ALGO as shown above
and be able to apply for any market and any time frame? The screen shot above is of the Mini SP500 from today.
If so, please send me an email (Ilan (at) cannontrading.com)with the following information:
1. Are you currently trading futures?
2. Charting software you use?
3. If you use sierra or ATcharts, please let me know the user name so I can enable you
4. Markets you’re currently trading?