End of day review 3-23-11 Wednesday

So the bigger picture was that ES was in a range has been in the top of that range and i was expecting responsive sellers to step in and take market lower. Initially on the open we moved lower and almost hit the 1277 area. ES stopped short by a few points and ended up trending higher throughout the day. I had one good short on a retrace back into resistance and that was about it for the day. I wasn't expecting a move higher today so i wasn't really looking for longs we never really got any good rotations to play off of so just sat back most of the day and kept what i made in the morning. 1295 area is kinda the line in the sand for sellers. If buyers can take it above i would expect to see higher prices. Below sellers are in control.

Pre market analysis 3-23-11 Wednesday

News: New home sales @ 10AM

Daily chart notes: The daily chart shows a massive uptrend and we have recently seen some selling with a bounce coming in. We are in a short term down trend and bouncing within this down trend so the market can really take off in either direction. Yesterday was an inside day and we could see a break out today. we have retraced back to 50% - 61% of the move from the top.

30 Min chart notes: the 30 min chart shows a recent uptrend and now some sideways trade has been taking place. This is the area that buyers or sellers could take over so stay vigilant and expect the unexpected.

MP Notes: MP shows me that we have been in a recent balance area from around 1292s-1242s area and we have recently been trading sideways at the top of this recent range. Like i said before the market can go in either direction from here but the logical move would be to the downside being we are at the top of the area (responsive sellers). We have a neutral weekly IB so i expect support and resistance to hold for now.

Trade plan: ES has gapped up approximately 15 points 3 days in a row and built acceptance higher each time. We are at the extreme of the recent balance area so i will be looking for responsive sellers to be active around here especially with the neutral weekly IB. We had an inside day yesterday so a break out is likely and i will be cautious at the first resistance and support levels. If we break the globex lows a test of the 1277 area POC is likely and i expect buyers to be active there. For the upside i expect responsive sellers to be active at the resistance areas on first test. A break above 1298-1300 area is a red flag for sellers and higher prices can be expected. Today we have new home sales out at 10AM and im expecting a balanced session leading up to that.