Markets have maintained bullish conviction as dips have been routinely bought and higher highs have become standard. Even the S&P Cash index broke its 2011 high briefly yesterday. The Dow Transportation index ($TRAN) is one index not supporting the bullish move. It is currently more than 3.5% off its high from February 3d and remains 7.9% off its 2011 highs.
Futures saw continued gains overnight but sold back down this morning after a worse than expected durable goods number. Support has now come in at yesterday's post-rally consolidation lows, currently around 1366-1367 on the ES.
Although a correction may be on the horizon, I have to remain bullish for now.
In terms of today's trading, we will likely see limited action or consolidation following yesterday's rally. That will be added support for the bulls.
Levels to watch today on the ES:
Resistance above at: 1373.25-1374.25, 1380.50-1381.50
Support below at: 1361-1362, 1353-1354
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The rally following a really good consumer confidence number (70.8 vs 64 consensus) is now being rejected downwards. If we see a move down to 1362.50-1363.50, I like longs there.
ReplyDeleteVerde - Are you not daytading ES anymore?
ReplyDeleteVis
I am, but I'm not posting my day trades anymore only because it was not possible to be transparent enough in terms of posting entries and exits in a timely manner on the blog. I generally day trade the open and the close and I try to spot a daily low or high that might come in the first hour and then enter and hold a position from there till the end of the trading day. If I see support or resistance confirm at one of the levels I post each morning, I will often take a long for example off confirmed support. If ES had sold to 1263 this morning, I likely would have held a long from there for the remainder of the day... assuming selling didn't continue of course.
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