Friday's buying surge represented a bullish breakout pattern from the short-term downward action that began on 7/5/2012.
Higher lows dating back to the beginning of June indicate overall bullish sentiment in the immediate-term.
This means I favor buying the dips right now.
The next level of key resistance is around 1370. If price action confirms resistance at or above 1370, I will look for short entries. Looking at the bigger picture, technically, markets are bearish dating back to the April highs. This is why I will like shorts again above 1370 ES. As long as the ES does not close above 1383 in the coming week, the bearish overall picture will continue. On that note, I will be expecting to turn my outlook bearish by end of the week and into next week. Price action will obviously have to confirm this, so we'll see...
For today, expect consolidation following Friday's rally.
Levels to watch today on the ES:
Resistance above at: 1353-1354, 1356-1357, 1360-1361
Support below at: 1339-1340, 1335.50-1336.50, 1332-1333
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