Friday, June 3, 2011

Pre market analysis 6-3-11 Friday :)


News: NFP @ 8:30AM, ISM non Mfg @ 10AM
Trade plan and Price action analysis: (Price action) ES balanced in yesterday session building a P shaped profile with most acceptance at 1312 area. Yesterday ES took a dive down after putting most of its value at the top of the mornings range. The move lower was to find the buyers and they came in around the 1305.50 area as expected. We bounced from there closing in value on the day. Globex has balanced over night but placed value on the lower part of yesterday value. This is slightly bearish but we are at the bottom of this move and a likely place for buyers to hold their ground and try and put together another rally attempt. Globex move up was capped by the 1312 level and yesterday VPOC and the down side shut off at 1305.50 once again. We have a small bounce right now (7:30AM EST) and i will monitor this throughout the morning and into the NFP number. Update.. The number is alot worse than expected and we traded below the 1305.50 down to 1298 area.
(Trade plan) With NFP out today i plan on waiting to see the market's reaction to the release at 8:30AM. In the case of a bearish reaction we could trade below the 1305.50 key level and in which case i will be looking to get short on any PBs into my resistance areas below. I would need to see the market trade below that level for a little bit to confirm the break. In the case of a bullish reaction i will be looking to be a buyer on any PBs into support as i am expecting buyers to be active down at these levels and above the 1305.50 area. Yesterday was a short covering day on the lows at key support so buyers are active around here.

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