News: ADP employment report @8:15AM, Beige book @ 2 PM
Daily chart notes: ES sold off hard yesterday showing that we may be starting a new down trend. We stopped right at the major uptrend line from the lows back in august.
We have strong support at 1293 area a break and hold below this would confirm a down trend. We also have 50 MA right below the 1293 area that could act as support. We may also just stay and chop in this bigger range area of 1293-1342. Bottom line is we are still in a strong uptrend.
We have strong support at 1293 area a break and hold below this would confirm a down trend. We also have 50 MA right below the 1293 area that could act as support. We may also just stay and chop in this bigger range area of 1293-1342. Bottom line is we are still in a strong uptrend.
MP Notes: ES traded almost to the top of the range and sold off hard in yesterday's trading. We had a big trend day down and globex is forming value below yesterdays lows giving us a bearish macro structure. It is a strong possibility that we continue to move lower but usually after such a big move we will consolidate.
Trade plan: For today i will be looking to sell any resistance levels as i believe that responsive sellers will be active on first touch of these areas. I will stay cautious on the long side and will not be looking to be a buyer so quickly. If we do continue to move lower i will be more inclined to be a buyer at support areas below yesterday's trading. In the event we move higher the first area i will be looking at is the globex highs to play the bearish macro structure. Be patient and relax :)
