Friday, December 9, 2011

ES Saw a Bounce As Expected. Now Preparing For Short Entries

ES (December Contract) has found resistance now right in my 1255-1260 zone. This is 1250-1255 on the ES March Contract.

I will speak of price in terms of the March contract (ESH12) going forward.

I prefer short entries now and expect that the ES has topped, or will top, in the 1250-1255 range. I am looking for the ES to now resume its move down to the 1212-1217 price target. We don't yet have confirmation of a top, so trades will be intra-day or scalps until a clear topping signal triggers. At that point I will look to hold short until ES trades down to the target below 1220.

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