News: Jobless claims @ 8:30 AM, Chicago PMI @ 9:45AM, Factory orders @ 10AM
Daily chart notes: We had a bearish candle at strong resistance yesterday. ES could be getting a little over extended up here and we may see a pull back. Volume has been dropping off as we move up as well.
Trade plan: ES gapped up and found support then traded higher throughout the day building acceptance at 1325.50. We are at a critical level for ES and it's a place where responsive sellers could step in. We have nonfarm payrolls tomorrow so we could get a balanced session heading into that report tomorrow. With that being said I will be looking for selling and buying opps at the levels on 30 chart. Globex traded in a small range heading into this morning open. We traded down to 1321.75 cvpoc and then back up to 1325.75 building acceptance at 1323.50. I have pre market resistance at 1325.50-1327.50 which is a key level and i expect responsive sellers to be active there. If we break above that there is strong initial resistance above at 1329.50-1331.50 and 1332.50-1334.00 and then the highs of the year. If we break above i expect the buying to shut off at the 1332-1334 area so i will be looking for selling opps at each level above. For the down side i have pre market support at 1319.50-1321.50 where i expect buyers to still be active. Below that i have initial support at 1317.50-1318.50 and then strong support at 1314.50-1316.00. If we start to sell off with momentum then i will less likely to take longs at the support areas and looking for momentum break and retrace trades as long as there is strong momentum in the market.
