News: ISM Mfg index @ 10AM, Construction spending @ 10AM
Trade plan and Price action analysis: (Price action) Yesterday ES gapped up and had a slow decline down to support. The context was bullish and buyers were expected at support areas. Buyers drove price back up to the opening prints and closed at the highs above value and shifting the vpoc up from friday. The upside was capped in globex at the 1347.75-1349 level and has traded lower down to the 1340-1341 level. Globex is placing value at the top portion of yesterday value area showing that buyers are still in control.
(Trade plan) With globex trading in the upper part of the Tuesday value area the context remains bullish and the trend is pointing up. We have 2 important news releases out after the open at 10 AM and we could just balance before they are released. The expectation is for support to hold today and my focus will be on the long side at support areas. Depending on the market's reaction to the news releases i will be looking for the globex lows and the 1340-1341 area to hold first. A break below that will bring the 1336-1337.50 area into play where im expecting to see buyers active as well. I remain bullish above the 1333 area. a break below that will turn me neutral short term but still bullish longer term above the 1313 area. Over all i will wait for the market to set up and look for the releases to hit the market before taking a trade unless something really nice sets up.
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