Yearly Pivot Support
November 1, 2009 4:40 AM

ES sold off hard on Friday. ES failed to continue its upside momentum from previous day. About 11am ET, ES started showing the signs of sell-off when price traded below the Globex Low around 1056 level. Repeated lower-lows confirmed further downside momentum.

Many ABC Bearish setups/trades were triggered Friday. Around 2.30pm, I started noticing the Yearly Pivot (1029.50) as the key support level and may be respected. 3.05pm was the first time @ES tested its Yearly Pivot (YPP, 1029.5) and rallied to 1038. Not a big trend reversal, but this YPP levels can be traded for scalp for counter-trend trades. Second time @ES tested Yearly Pivot again around 4pm. Very few times, I have seen @ES traded near Yearly Pivot Levels. Usually yearly Pivot levels are well respected for a quick scalp.

In Trending markets, Market Structures (MSH/MSLs) are great sources for confirming the reversals.

MSH/MSLs pinpoint key reversal points when they are reversing from:
1. Outside the Fib. Bands
2. Bouncing off Key Pivot Levels/Price Profile Levels.


Fib. Bands
Floor Trading Pivots
Market Structures


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