We expected ESM9 to hold support at 777 to 784; it did but markets were spooked and could not even make a 10-point dead cat-bounce intraday, except after stocks closed and now AH session. Momentum was down and we were looking to exit longs and short any decent intraday rally but never got one. We will be looking to short rallies for the next day or two. ---------------------------------------------------------------------------- Although late minor upticks allowed the market averages to end off the worst levels on Monday, they were in retreat mode for the second session in a row with the S&P sliding as much as 6.3% off last week's peak from intraday high to low. The rejection of the automakers turnaround plan (canned the CEO) by the While House, and commentary from the Treasury Secretary that some banks will need large amounts of assistance kept the profit taking mode in the wake of the 25% March bounce intact. Volume was on the slower side but the slide was broad based in nature with little other than Education and safe haven Treasuries firmer. The ability of the S&P to hold in the vicinity of it 20 day exp/late Feb reaction high (782/780), the late upticks and the high TRIN close allow for some further very short term gains. However, the aggressive nature of the two day slide argues that if such a move develops, it would be part of a temporary bounce. Resistances are at 790/792, major resistance at 797 (50 day ema), and 814. Support is at 781/779, 769 (38% retrace of March run), and the major support zone at 760/755.
Stop was at 812 see previous messages WIDE STOPS generated by system because of two consecutove BIG RANGE days, high ATR Still fine tuning the entries. May have to decrease time frames on big ATR days.