Monday, September 13, 2010

Power Uptrend

This is a classic powerful uptrend which leaves behind numerous unfilled gaps and doesn't provide many pullbacks.  We are overbought, so I can't recommend buying here, but I do think shorting should be done carefully at extended rally exhaustion points.  ESZ (December contract) at 1120 is an obvious point of heavy resistance, since that is where we had the breakaway gap down which went all the way to 1040.  1115 is also another spot where a lot of trading took place in August before the move down. 

I am looking to get short but will wait to see what the manic Monday buyers will do. 

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