Wednesday, May 25, 2011

Pre market analysis 5-25-11 Wednesday


News: Durable goods @ 8:30AM,
Trade plan and Price action analysis: (Price action) Yesterday closed below value with sellers in control but we are still in the same area as yesterday. Globex sold off last night finding support at 1302 area and has bounced from there. Globex has moved back up into the 1314 vpoc of yesterday. We have aq P shape on the overnight profile which is showing sort covering at the lows here. Es keeps drifting lower on the daily and I'm starting to wonder if the bulls area ever gonna step in and try to push back up.
(Trade plan) Without any substantial news releases today we could just balance in this area again today. The macro structure is bearish with globex value establishing lower on the previous day and its possible to see some follow through to the down side today. At the same time this is a good area for the bulls to start pushing back up for a little relief/short covering rally. So the risk is really on both sides of the market. If we start to take out the lows of the 2 day balance area and break the cvpoc at 1312.75 we could get a flush move down into next support areas. On the upside if we get above the 1318-1320 level that could open the door for a gap fill back up into 1327-1329 area where i expect sellers to be active. Over all im expecting balanced trade and will look for long and shorts at my levels unless the market tells me it wants higher of lower prices.



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