News: No News releases today
Daily chart notes: The major trend line was broken last week indicating that the trend up may be changing. ES also has been forming lower highs which may mean that we are starting a new down trend. We have been in a consolidation area and broke down but quickly reversed back up into the range. We are currently retesting the bottom of the uptrend line.
30 Min chart notes :The 30 min chart has been trending lower recently and has started some ranging type action in globex session. We are still in a range on the higher time frame and I'm expecting ES to move higher.
Trade plan: ES has had a big move up on the daily time frame and has recently been trading in a big range. On Fridays session we found responsive buyers active at the open on the lower extreme of the range (1287-1288). ES has built value back above 1288 level and globex has formed value above that level as well. The expectation today is for ES to move higher. The key level for ES to stay above is the 1287-1288 level. If this area breaks i expect a test of support levels below and would confirm sellers are in control. If we hold above that area then i expect a test of the 1305-1307 area which is a back test of the major uptrend line and resistance area on the composite. A break above that will lead to a test of the 1310-1312 key strong resistance area. Over all i will be a buyer at support and a seller at resistance at 1310-1312 and below. With no news out today we could have a balanced session. There is also FOMC announcement tomorrow and this week is quad witching. Be patient and wait for the market to set up in the morning before having a bias.
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