News: international trade at 8:30AM, FOMC minutes at 2PM
Trade plan and Price action analysis: (Price action) Yesterday saw ES trade lower and globex has followed through once again. The overnight session was volatile swinging up and down. The market is currently in a DT and trying to find a bottom. And we are floating around the 50% retrace level from the move up and could see some buying come in around here.
(Trade plan) ES has been in a DT with sellers in control yesterday and the globex session as well and the expectation is for resistance areas to hold. We have no news release out after the open except for FOMC minutes at 2 pm and we could likely see a balanced market heading up to the release. With the big up trend over the last week we could be seeing a PB now as we are at the 50% retrace level and buyers may begin to step in if this uptrend is to stay intact. The 1294 area could be the line in the sand for the buyers and they would want to see the market close above that area today. If we break back down into that area then we are likely to see lower prices and the new rally would be void for now. Over all my focus will be on the short side at resistance areas but i will be mind full of buyers getting active and will look for opps to buy good support after i see signs of the market gaining support.
