Friday's action saw massive buying come into the market following another lower low on the ES. Oversold conditions begged for an excuse to rally and optimistic remarks from Obama and Boehner regarding the fiscal cliff provided the catalyst. The ES rallied almost 19 points in just over an hour and finished the day back over 1360. I Expect buying to continue as we head into this week and the Thanksgiving holiday. If you're not already long, I'd be very confident in buying dips from here.
For some targets to the upside lets look at some key resistance levels.
Resistance on the ES (Z December Contract):
1367-1370, 1386-1388, 1394-1397.
Consider taking profits on long entries at any of these resistance levels. Even though I am bullish now in the short-term, I will consider shorts again as the ES approaches 1400.
That's what I am looking at right now, lets see how the market opens...
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