Monday, August 23, 2010

Market Showing Some Strength

S&P 500 Futures manage to trade above 1075 resistance in early trading. This immediately negates my short side bias.

At this moment I am looking for a long entry around 1074 and short entries around 1085 on the ES.
I could see some choppy consolidation type of action in the markets today but long entries look good to start the session. If we do trade upwards, I like the resistance in the 1084-1086 range and will look to short the market there. There will also be some minor resistance along the way between 1078.50 and 1080.

One other thing to watch is if the ES manages to trade below 1074 with any conviction, there is the potential to move back down to Friday's settlement around 1069.75. If buy support comes in at that level, I will look to get long there as well...

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