News: International trade @ 8:30AM, Treasury Budget @ 2PM
Trade plan: ES recently has been in a range and yesterdays action saw ES break the lows of that range. We have been sliding lower over the past few session with value expanding wider. Globex has traded down to strong support at 1310-1312 and bounced there building out value and acceptance at 1312.50 which is the CVPOC as well. It seems that sellers have taken control over night and i need to see if they can manage after the open. My focus will be on the short side today and i will be looking to sell any rallies into resistance areas. I have pre market resistance at 1314.50-1316.50 and will be looking to sell here on first test. If sellers are to remain in control then this is the area where they need to step in. If we break above that it could be a red flag for sellers and a test of the 1319.50-1321.00 2nd pre market resistance area and globex highs will come into play. A break above that and buyers will regain control and i will be more cautious on shorting the initial resistance area up there. In the case of accelerated down side trade I will look for opps to join the move by taking a quick retrace trade otherwise shorts are risky down here. As for playing longs im not to eager to get long today until i see some reasons that the market is being supported at a strong level. The 1310-1312 Is a strong support area and is also pre market support on my chart we could get a bounce here if buyers are to try and regain any lost ground today below that we could get a quick move lower so im not looking for any longs really. We will be gapping down today below value so responsive buyer could be active at this area when we open. Or we could get an imitating move lower. Gap and go type open. Over all i will monitor the open swing to gauge how is in control.
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