The bulls win!

I am talking about the equity bulls and not the NBA Chicago variety although I do hope they go on and beat the Heat (yes I am a fan!). Anyway the bulls managed to hold the 50 day moving average on the ES after testing it twice yesterday. Coincidentally, yesterday's S1 pivot of 819.50 was exactly where the 50 day moving average was. Quite a powerful level of confluence for both the intra day traders and the longer term traders and this no doubt helped the market to hold this price level. Cumulative ticks also finished flat after dipping as low as -20,000 by 1pm E.T. We are now set up for the market to bounce yet again from this key price level. Another weak bounce in the next few days ie rallies are sold and you know something isn't quite right. 

Well earlier this morning we saw some pretty large gaps up in the e-minis and the odds aren't all that great for fading them as we were above yesterday's highs but now the same MO of selling rallies seems to have kicked in and we are coming in a bit. I guess the economic data that just came out of the UK does not seem all that great. But then the psychology of the current market is to sell off on any bad news and discounting good news. If we are to repeat the same this then we may well get gap fill during the cash open.