Pre market analysis 7-26-11 Tuesday

Been very busy with work and have been having a tough time trading as a result. Back to my routine with a few changes. I will see how it goes.

News: New home sales @ 10AM , Consumer confidence @ 10AM

Trade plan and Price action analysis: (Price action) recently ES has pulled back from its big move up and balanced for a few days. We saw initiative buying break the balance area above the 1325s area. Thursday and Friday balanced in a range and Monday balanced in that area as well. Value shifted lower Monday and the sellers closed in control at lower value area and the vpoc at 1333.50. Globex initially moved lower testing the lows of Monday at 1326.75 and has bounced back above the 1333 area cvpoc. The buyers need to see this market above the 1333-1335 area to maintain short term control.

(Trade plan) I have 1333.1335 area as the short term line in the sand and buyers will want to see the market above this level to stay in control. A break below would bring the 25-27 area and globex lows into play. Any pushes below the 25-27 area will likely attract responsive buyers and I'm expecting this area to hold as support on first test. If the market holds above the 33-35 area I'm expecting test of the 1340-1342 area /globex highs and a possible break above to test the clvn area at 1344 and the 1347-1349 level where i expect responsive sellers to be active. Over all buyers are in control above the 33-35 area and i will focus on longs at support for test back up into 41-44-46.50. There are a few news releases out after the open and this could give a catalyst to move and test either area.