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Saturday, May 30, 2009

Examining Friday's End of Day Spurt








Its not often I throw submicrowaves up on a chart. But Friday's end of day move was so curious I couldn't help myself. Hey thats what I do!

I charted the end of day structure as best I could with what the waves say so far. And the waves point toward a blowoff wave 5 top.

The e-minis match up well with this also. A gravestone-ish type doji candlestick even showed up on the hourly due to the way trading stops on Friday. The e-minis actually had almost a 10 point move in 1 minute and came back down in the same minute.

I found another prominent instance of end of month spurt at the finish (its not that uncommon). It also happened on the last day of November 2002 on a Friday. The curious thing about that chart is it opened the following Monday a point higher and then collapsed back down with the first hour of trading. So this supports Kenny's take that the market may open and hit his 921-922 target and then head down.

So how futures of course move Sunday will be some strong clues. Monday's opening will also be key.

6 comments:

  1. I think the MM is reading this blog and they are going to open the market one point higher like you say, drop about 5 points so you could go short, and then they would push this thing up into the sky.

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  2. Hi Dan,

    As someone who is learning EWT, I love your blog and really appreciate your "micro-labeling" exercise on the EOD move on the SPX.

    This may be meaningless, but TSX Composite reversed quite a bit of its eod gain in the "extra liquidity" period after the close. The TSX has some special measures to reduce EOD volatility (which sometimes seem to actually increase it).

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  3. Dan, i sent you an email.

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  4. The site http://market-ticker.denninger.net/archives/1072-What-Was-THAT-Friday-Market-Close.html has some great thoughts on the EOD move. Overheard on pit audio "someone" bought 1000 large future contracts (x5 ES) at the market just before the bell and caused the dislocation...

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  5. Futures up to 932 and around 930 now. msmiko

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