This morning markets in Europe and Asia are mixed while US futures getting a small bid. Continue to support view that markets will climb back up (above 1290 on ES) to retest the highs.
I'm favoring Wednesday or Thursday as a likely inflection point and beginning of a reversal to the downside. Will be looking for short entries as ES tests the 1295 high. A pierce of 1300 on the ES is possible and would mark a low risk opportunity to get short this market. Strong chance for at least a 50 point gain to the downside. The 1220s (ES) will be a price target to consider long entries. Expect bull-market to continue from there.
Today's bias: Long
Levels to watch today on ES:
Resistance above at 1285, 1288-1291, 1295
Support Below at: 1277-1278, 1273-1274, 1266-1268
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1285 could be a good intra-day spot to get long in a buy the dip type of mentality. I'll be considering a long there...
ReplyDelete1286 would have been the more aggressive spot to get long. I didn't take that play
ReplyDeleteany longs from upper 1270s should have break-even stops if you haven't taken profits already
ReplyDeleteNo longs yet, wait to see if we test VWAP. and then consider, no defense on longs at this hour of trading
ReplyDeleteLong ES 1284 at VWAP... no defense below 1283
ReplyDeletebreak-even stop and let ride.
ReplyDeleteOr take profits now...
In this current trade example, it is best to have at least 2 contracts. That way you take profits at 2 points while letting second contract ride with a break-even stop.
ReplyDeleteagreed. Another reason for caution. The transports continue to underperform the industrials and fail to to confirm the new highs in the industrials, setting up a possible Dow Theory non-confirmation
ReplyDeletehttp://tradingwithtechnicals.com/inter-market-analysis-for-tuesday/
I am in complete agreement with your near term roadmap of the market.
ReplyDeleteI hear you, transits have been looking weak, does support the analysis...
ReplyDelete