Market Breaks Down Further

I have not had a chance to post other than my comments on Monday. The 1180s support has obviously broken down since then. There were some nice opportunities to trade the consolidation range on Monday and Tuesday. Sellers ultimately maintained control with the looming debt problems in Europe and budget discussions here in the United States. Its not that the news is anything new, its just the fact that there have not been any positive counter-punches by policy-makers of late. So though the news supports the selling, it is highly technical as the market now heads toward the 61.8% retracement from October lows.

I like longs in the 1150-1156 zone on the ES. First test of this price range should provide a high odds chance for a bounce. A close below 1152 would be very weak and force me to rethink my long bias. By long bias, I believe the market will soon make a bottom in terms of trading for the remainder of the year. I am waiting to see signals that will confirm when this happens. Market remains weak in the immediate-term.

I will post more soon...