We begin today's trading with weakness again as the ES has sold down 10 points overnight following losses in Europe and Asia. Weakness may be in response to BHP Billiton suggesting iron ore demand in China is slowing.
We are seeing solid support hold up so far just above the highs from 3/14 and 3/15. Most of this year my bias has been bullish and this means I have favored buying the dips (as I frequently say). This morning is one of those opportunities. If you were, or are able to get a buy entry in the 1395-1395.50 range, it allows you a low risk opportunity to the long side. There is a decent reversal pattern off the low of 1394.25 which allows you to use a small stop at or just below the low making your risk to reward very favorable. If you get stopped out, you can always get long again if support holds and another reversal pattern emerges.
I'm Long ES at 1395.50. First target 1402. Will consider exit if ES trades below 1395, can always get back in long when support confirms.
Levels to watch today on the ES:
Resistance above at: 1401-1402, 1408-1409
Support below at 1393-1394, 1387-1388, 1384-1385
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Out and waiting for support to confirm before getting back in long
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