LEVELS: 12/28/12 and the results

BOT TRADING SYSTEM


PRE-OPEN POST:       ES LEVELS TODAY:   1405.25-1402.5-1398.25

OVERNIGHT AND EURO ZONE

The overnight (US after hours) and Euro Zone trading remained in the ranges and failed to break higher than the Middle BOT, and finally broke the SB in Euro Trading.

US OPEN

Yesterday, the ranges basically stayed the same.  Just a shift where the LB was a BO level.  Today was different.  New BOT levels were calculated. Interestingly, the SB seemed low.  1400 had been resistance bulls bought and supported as we moved higher to 1445.  With no activity to push PA higher, sellers seized upon (and buyers took profit) the government's lack of concern to resolve their spending appetite.  If revenue was the only issue, simple have everyone contribute.  Fixing the problem is an entire blog by itself, and really does not have to be difficult nor require all this drama.

Back to the BOTs.  The SB was oddly out in left field it seemed in the pre-open.  PA was in a range run, albeit finding that 1400 support.

That support remained until the US Open, and the failure to run the range was noted.  The "gap to the SB" had a bullish tone.  Three hits on the LB seemed to be the resistance, creating a trading range for the day.  Then the alert for the fourth hit on the LB:

[10:42] <CM> 1403.5 is the short to the 1400 lows we have 3 pushes to the LB long the 4th (chart link omitted)

[10:50] <CM> we had lows established pa could not push the full range buyers were defending the 1400 area

PA hit the BO-5 level and failed to break it.  Per the rules, a FBO is anticipated to return to the prior level, or the LB in this case.  A lower high develops around the middle of the pullback range and a bearish TL develops.

A steady, low profile selling into the range until the 50CB candle at B74.  Interestingly, the 50CB was approximately the Middle BOT.  It was also a range bar nearly completing the entire range run, and creating the bearish gap between PA and the EMA.

Now the lonely SB is important.  A BO is significant and expected to run a minimum of +5 points.  The strength of the BO and increased gap to the EMA was strong bear signals, allowing seller to capitalize upon an extended run to BO-15.

An end to a nice day, a nice week, a nice month.

Have a great weekend and a Happy New Year to all our readers.  Look for some important changes for 2013!