News: GDP @ 8:30AM, Consumer sentiment @ 10:00AM
Daily Chart Notes: ES Traded down to 1292 area and was quickly rejected back above the 1297-1299 level which was also the 61.8% fib retrace level of the bigger move down from the highs. The recent action can still be viewed as a pullback in the bigger uptrend. I will now monitor the downtrend pullback to see if it will reverse and go lower and continue the move down or if we start to range and move back up to the highs.
MP Notes: The profile has been placing value lower all week and finally over lapped yesterday. Now Globex is forming value higher up on yesterday’s session giving us a macro structure. We tested the 1297 area and formed a p structure on the day indicating short covering on the lows.
Trade plan: With ES overlapping value yesterday and gobex forming value higher it looks as if the market may be turning and a short term bottom is in place. We still have a bearish IB on the weekly profile and it possible we test lower. I’m expecting support to hold, and looking for the market to make a move higher up. The only catalyst out after the open today is the consumer sentiment number and depending on the market’s reaction to it we could go either way. The first area I will look at for longs is globex low area which is a level on the composite as well. I will also be looking for short opps into resistance area on my 30 min chart. I will be a little more cautious on the short side and will only look to take good solid set ups. The market looks like it is gonna open above yesterdays value so the expected open is OAOR and sellers to step in and push the market into support. Be patient and wait for the market to show its hand before jumping on to anything. RELAX :)
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