Up and Down Action

It has been an up and down market over the past week and though I continue to be bullish overall, I am anticipating the possibility of a subsequent move lower. Technically, the ES has been range bound in the lower 1330s to the lower 1350s all week. With the weakness in commodities and strength in the US dollar, it has been difficult to get any follow-through to the upside. Today's action represented the third time in the last 6 trading days in which the sellers rejected a bid to move the markets higher. This increases the chances that the market breaks down further from here. I am watching the 1330 level on the ES, a confirmed break of this level will likely push the ES down towards support at 1307-1309. This does not change my overall outlook on the markets, which is bullish.

I am currently long the ES (you can follow my position here) and will remain long. In the event the market does trade lower next week, I will continue to add to my position by buying the dips. If my sentiment changes based on further price action or news, I will update my view...