The Markets managed to hold onto the gains from yesterday's trading in the overnight session and have already reached some key resistance just underneath 1107 on the ES. Watch the current highs of the overnight session at 1106.75. This could potentially be the high in the market today. However, there is still potential to trade higher and test the 1107 to 1122 range. I don't expect the markets to have the strength to trade higher than 1122. If somehow we did manage to close today's trading above 1121 or 1122, that would show impressive strength and we could expect higher prices to continue.
I will be looking for the current "up" trending action to break down at which point I will be looking for short entries. The first area of support to contend with is 1096 to 1097, then 1089 to 1090. Below that look for support at 1070 to 1071, then 1055 to 1056.
On another note, we could see a consolidation type of trading day today with possible minor new highs as it would be in the best interest of the Fed to see the markets close on a positive note for two consecutive days before heading into a long weekend in which it wants consumers to feel confident... Although I will be looking to short this market, that may have to wait till next week... we'll see if buying action can continue this morning or not...
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