Monday, September 29, 2008

Bottom of the hour

Lunch time! The S&P emini has indeed mananged a flush move to the downside. And we are at the support level of the 1160s. There were some buy response that came in at 9:28 and 9:33 PST in the chart below. Selling pressure has subsided and at the POC of the day we have a 2 way auction with some shorts covering. Note the delta is at -55K.

The 1180 area is key as it is VWAP, Dev VAH as well as a minor resistance today. This flush move to the downside gobbles up any long position from the 1160s from last week and prior session. An action market makers and locals love to orchestrate. Financials are still drag until now. We need financials to turn around significantly less than 2 hours for a true reversal. Regardless of indented direction there is a high likelyhood of price whipsaws. Given the negative delta we are at. We need a significant amount of covering and buying for a reversal. Currently, odds favour resistance at VWAP. If we get to VWAP it will be the nature of the buying or covering that determines the conviction. A significant volume in covering may change the game. So far though the big contracts are still -18k negative.

White house announces that they have enough votes for the bailout.

No comments: