Wednesday, October 6, 2010

05.10.2010 - market review

- yesterday we finally broke to the upside from the balance area on 1.9 mil contracts traded
- the break was made through a healthy trending day, on an elongated profile, with 2 zones of singles (1152.00-1151.75) and (1149.25-1149.00)
- VA (if it matters that much in a trend day, price being in search for new value) was established higher, breaking from the value build during those balance days
- close was near the top of distribution validating the rally
- a late day decline gives us the initial S and the first reference point: 1154.50, price acceptance above this level gives us the possibility for continuation to the upside; acceptance below this level puts a shadow on the trend up
- on the downside i will monitor the singles areas as S zones; to the upside i have no reference points so i will rely on volume profile for the current trading day

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