News: No notable news releases today.
Daily chart notes: The daily chart has been in a nice short term up trend and is showing signs of ending. We are at the top of the balance area and could see some selling up here.
Trade plan: Yesterday ES traded in a range that has been in for the past few sessions showing balance trade. I'm assuming it is due to the BOE rate decision out on Thursday. I'm sure the market will watching this decision closely. Yesterday ES found support at the 1324-1326 level and traded higher into the 1332-1334 level where we sold off back down to the bottom of the range. Globex has been putting value in lower down but has recently shot up breaking the top of the range and sitting above the 1332-1334 level. Buyers appear to be in control and we could get a break of the highs of the year today although I'm not expecting it. If ES opens above the 1332-1334 level we can expect responsive sellers to be active at the open and i will be watching for this. I have initial resistance at 1337-1338 level which is the high of the year and it's an area i expect responsive sellers to be active. If we open above the 1332-1334 level this will now be pre market support and it may hold if the buyers are really active. In the case we break below that level the next support is the globex lows and MCVPOC area at 1327.50. A break below this will bring the 1324-1326 level into play then the gap fill and level at 1320.75-1322.75. Over all the game plan is to look for responsive sellers at initial resistance unless we open with an OD opening type and responsive buyers at support. I prefer the initial support area for longs. Volume is thin up here and we could see a nice correction play out soon. If we break down fast i will not be so quick to get long at support. And the risk is on the long side at the top of this bigger range.
