DOW TRIPLE; ES DOUBLE LONGS OUTLOOK 6/12/12

LAST evening after a day of extended selling, something occurred that gave a clue to today's trading:  buyers at a prior support.

The market had heavy puts still open.  Logically with a large sell off one would expect some (most?) to exit with profits prior to expiration.  If so, market buyers would look for a beneficial entry point to play the next leg up.  They do not like buying high, giving preference to a pullback for a better entry.

Last evening they got that opportunity.

The outlook seemed obvious:  

[22:58] <CM> 60m  buyers at the support levels we discussed earlier  (chart link deleted)
[22:59] <CM> tomorrow:  dow triple digit move   es double digit


A little detour in the US Open with a range run BO short, that found support at the BO-5 level.  A little "shake (shake out traders) and Break" was in order before the longs again took control with a reversing range run and long BOT BO.

PA ends +10 for the long break out, more for those entering the reversal.