End of day review 3-14-11 Monday

ES opened above Fridays value then found resistance around the 1292-1294 area. We traded lower down to support at 1281-1282.50 and bounced from there. i was expecting ES to trade higher today but we traded below the 87-88 level and confirmed sellers are in control. This left the door open for a move lower. We found support at 1281-1282.50 area and the market chopped along that level for a little bit. We traded back up into the bigger range forming value all around the level. So i looks like we have a range extension. Im still expecting the market to trade higher this week but i will be cautious of a move downward. Im expecting globex to trade above 1287 and no higher than 1298

1st trade: I was short at 1285.50 and ended up scratching. The reason for the short was we moved lower below key 87-88 level and stayed there for some time. As soon as ES moved back up in to resistance i was waiting there to sell. I scratched because we were chopping around for sometime at support and had strong buying back up into resistance. The trade was good for 2 points but i wanted to keep risk tight so after a point in front i went to break even.

2nd Trade: I took this short after i took the 1st trade. I don't know why i took it because on the first trade i scratched for a good reason and i went and tried to short again at the same level. My mistake.

3rd trade: This trade i took because i was looking for longs and we pulled back to trend line and level support. The reason was because we traded back above the key support level so i was looking for longs.

Pre Market Analysis 3-14-11 Monday

News: No News releases today

Daily chart notes: The major trend line was broken last week indicating that the trend up may be changing. ES also has been forming lower highs which may mean that we are starting a new down trend. We have been in a consolidation area and broke down but quickly reversed back up into the range. We are currently retesting the bottom of the uptrend line.

30 Min chart notes :The 30 min chart has been trending lower recently and has started some ranging type action in globex session. We are still in a range on the higher time frame and I'm expecting ES to move higher.

Trade plan: ES has had a big move up on the daily time frame and has recently been trading in a big range. On Fridays session we found responsive buyers active at the open on the lower extreme of the range (1287-1288). ES has built value back above 1288 level and globex has formed value above that level as well. The expectation today is for ES to move higher. The key level for ES to stay above is the 1287-1288 level. If this area breaks i expect a test of support levels below and would confirm sellers are in control. If we hold above that area then i expect a test of the 1305-1307 area which is a back test of the major uptrend line and resistance area on the composite. A break above that will lead to a test of the 1310-1312 key strong resistance area. Over all i will be a buyer at support and a seller at resistance at 1310-1312 and below. With no news out today we could have a balanced session. There is also FOMC announcement tomorrow and this week is quad witching. Be patient and wait for the market to set up in the morning before having a bias.