I was thinking the same thing regarding it turning up after dropping below S1 (906) I think the more important common number in this case was yesterday's LOD (904.25). When these numbers are clustered it seems more reliable. ~EC
I agree, especially about the clustering of LOD and S1. It can only help the support. The same is true about today's R1 @918.5. Check out the structure of S/R two days ago and you will see that this level (ca 918.75) was very important then and was broken, first up, then down. No wonder it proved so difficult to overcome today the very first time. I vaguely remember that this number (920-918) was some important resistance in September. Could be wrong, but not likely.
wally - maybe my chart's wrong or you're using the term "exactly" loosely, but the S&P's didn't stop falling this morning exactly at the 911.25 level on my chart. 909.25 is what my chart shows. Which is closer to the 100 day EMA than the so-called pivot and the 100 DEMA seems like the most probable source of that support. As far as "stopping the advance" at R1 @ 918.75, my chart has that level breached as well with no 8-9 point retracement that I can see. At what times of the day are seeing those pivot bounces?
I am talking about the very first half an hour. The first 30 min bar has its low at 911.25, right? At least on my charts and I was also following it in real time. Then we got a bounce back up to 918.75 and then we went down again to 909.25 only to move up to 920+ some time later.
I have 911.25 as well for the first touchdown on the December ES emini contract. Maybe one of our quote services is off? I use Qcharts, maybe that's the problem.
I use Track Data and I have 911.25 for the low at 9:54 EST. Also "using the term "exactly" loosely" reminds me that I never follow pivots or other common numbers exactly. I think they should be used as a handle where the market could turn around or just pause. R1 does not always stop an advance... sometimes it blows right through and on toward R2 or yesterday's HOD. But when you see your MACD or CCI showing divergence and the price still moving toward a common number you might want to keep a close eye on it. My 2 cents. ~EC PS I usually get my framework of common numbers (LSS) from Rose at dacharts.com http://www.dacharts.com/~charts/2002-11-07/LSS_Nov_7_ES she posts them almost every day. I have no commercial interest in www.dacharts.com or Rose.
911.25 9:54 QCharts By the way ddefina et al QCharts users. Many times on the 1 minute chart the opening trade for each bar is different than what the CME shows as the opening trade. QCharts says they are aware of this prob and are working on it.
Gotcha - I was looking at the larger overall move. I see what you're talking about now - the "short the gap open" pullback to the 100 day EMA until just before the usual 10am reversal which stalled just below the gap open price level and then fell back to retest the 100 day EMA support area.
Sure, these numbers are not written in stone, markets fluctuate, but if these levels are approached more likely than not you can expect a common reaction: resistance or support and when these levels are broken that usually means the trend will continue or that at least is strong. They are even more important when occur close to other, more natural, S/R levels.