If you look on the price through here, on a weekly chart of just closes — not the highs and lows — you can fall all the way back and challenge, at some point, this 18-week moving average of closes, which is sitting at $3197. The market for the week is down one percent. The market is not caved in. It is not a crash, that's not what I'm saying, and don't you read those words in it. It's that at $3500 it was too expensive, and now it's coming down, and the market's got to search for where that right number is. So here you are down $34 for the week.
The swing line turned up — you now have higher lows, higher highs.
So the resistance, if you continue up without taking this down, is back at the $3376 level, and I don't see anything right on the horizon to carry the market all the way to those highs. If you take out this low, in terms of moving averages, you've got support on the 100-day moving average at $3196 and a half, but the Bollinger Band is down around $3309. So that would be the number that I would think the market would want to go to.
About the author
LINN & Associates
Over the past 35-years Ira Epstein has developed a reputation for providing clients with easy to use technology and teaching good old fashioned trading know-how. A number of our brokers have over 30-years trading experience. No matter how technology changes the methods of entering orders, there's no replacement for having "been there and done that before". It's the blend of services that brings things together.
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Ira began in the futures markets in 1969. Over the years he worked his way up, starting from the ground up as a "floor runner" culminating with his becoming a Floor Trader. In the mid 1970s Ira decided to make a career shift within the industry to develop both retail and commercial based clientele. His customer base grew to the point whereby in 1984 he founded "Ira Epstein & Company", a trading firm specializing in retail, commercial and self-directed discount futures trading. Along the way Ira became a leader in trading technology out of necessity, due to increased small lot trade volume. He was among the first to embrace the Internet, which as you know has dramatically changed both the way information is delivered and how trading takes place today.
One of the ways Ira, along with his brokers showcase their talents is through e-mails of market information and Ira's "Futures Videos", which can be viewed on our website, through Market Center, Linn-IraChart Software and on YouTube.