Monday Morning – S&P500 emini futures opens weak with no commitment on either side of the market.

Buyers didn’t show up for this overnight session on the emini and sellers consolidated the market down to support at 1448. The S&P500 emini future is consolidating in a narrow range from 1448 to 1452.

No news until Wed. so we could have a very consolidated market. We have been in this topping pattern for a month with our first move to resistance in mid September. Traders brought it to a high of 1469 setting this swing high which we confirmed on Friday’s session with what looks like a double top. There was increasing volume into the move but not capitulation. If price holds above 1450 then we can look for price to move again to new highs. with 1480, 1492 and 1502 giving resistance. Still holding 1562 area as the extreme high on this move maybe into 2013.

Key support levels are 1448 1440, and 1432, If price breaks through these levels watch for 1420, and 1414 to next major supports. Volume has kept its levels above 1.5 million on very short trading ranges. It has been a few days since we broke 2 million and these have been controlled by sellers. If these consolidated ranges are showing distribution then light buying to new highs, we could have a very weak move up. Could see this turn hard after the elections (or right before?).

Trade what you see and always do your own analysis. If you don’t know what you are doing don’t trade. It is high risk. We are going to be in Calgary, Alberta having a three day trading course. Join us.