US Futures lower this morning as we are seeing continued bearish sentiment in Asian and European markets overnight. Selling pressure has been steady, price has not rallied off of support all evening. This is different from the norm of late as usually we see buyers step in fairly quickly to rally price higher off key support levels. The ES has been consolidating in the 1352-1354 range throughout the early morning hours.
I do believe we should see a bounce higher this morning off the 1350-1352 support, though a pierce lower is always possible. I am looking for a move back up to 1358-1360 on the ES. It will be interesting to see if buyers will have enough conviction to push the market higher than that, but it will certainly be an area to consider a short entry for a move back down to the lower 1350s.
So even amidst the current weakness, I like longs in the 1350-1352 area on the ES and like longs even more around 1345. Selling pressure or continued consolidation may persist for a little while after the opening bell, but eventually I expect buyers to move price higher. I will consider taking profits on any successful long entries in the 1358-1362 range. This is my tentative outlook heading into this morning.
ADDITIONAL NOTE, 9:28am EST
Wait for support to confirm before taking long entries. 1250-1252 did not hold. Very heavy selling pressure coming in. Must proceed with caution. I will try and post additional notes in the comments.
Levels to watch today on the ES:
Resistance above at: 1360-1361, 1365-1366, 1369-1371
Support below at: 1350-1352, 1344-1346
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Selling pressure heavy here just before the open. I'm already out of my first long entry at 1350.50. Waiting for support to confirm in this environment before jumping in long
ReplyDeleteLong at 1345 ES. Will look to exit position if we make another new low...
ReplyDeleteVerde - Long ES 1 con at 1345.00 also - Will add if it goes lower - I think they are sucking in shorts only to move higher today or later in the week...
ReplyDeleteVis
Also, if we happen to break lower than 1340, I think the 1315 area will provide strong support for the month of March...
ReplyDeleteVis
The selling has definitely been more persistent than I expected today. Also the bullish channel dating back to the start of 2012 has officially broken down. The weakness has yet to confirm, but it seems like this market wants to head lower.
ReplyDeleteI like this long for now, but I'm keeping a modest target at 1349. Going to see how the market responds from there before deciding if I will continue to like longs...
Next key levels of support I am looking at Vis, are 1331-1332 and then 1308-1310.
ReplyDeleteI actually hope that they close it LOD to really create indecision - Agree with your support levels but my line in the sand is the 1315 area - We lose that level and this intermediate uptrend may be over - I am just scalping in 1 point increments today...
ReplyDeleteVis
Very oversold "short term" here though...
ReplyDeleteVis
We'll see if we get an EOD rally today. I tend to think we will.
ReplyDeleteI think ES 1346.00 area will hold any EOD up move...
ReplyDeleteVis
Added 3 cons at 1340.50 - Avg now at 1341.625 - Looking for 1 point here...
ReplyDeleteVis
Out 4 cons at 1342.75...
ReplyDeleteVis
What is the plan with your 1345.00 long?
ReplyDeleteVis
Covered my ES Long for a scratch at 1345.
ReplyDeleteI wouldn't be surprised to see the market rally back up to the 1360 level, but too much damage was done today for me to continue to hold this position...