Preparing for Short Entries

The market has now reached the price zone where I will begin to consider short entries. Intra-day action is obviously very bullish. Market is reacting positively to latest developments in the Eurozone financial rescue plan.

In the plan:

Creditors will cut all Greek debt in half.

The EFSF bailout fund will be leveraged to $1 trillion Euros

The ECB will continue to defend Italian bonds

Banks will be required to raise $106 billion Euros in new capital by June

The first two items are what have sent the markets soaring today.

ES has reached an intra-day high at $1275.75 so far. This is key resistance and right at my target high-zone prediction in the market. Jumping into shorts now, however, would be very aggressive. Although I like shorts here, any short-side trades will be scalps. I am not expecting any significant sell-off to start just yet. Will need to see some sell signals before committing more heavily to the short side.