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
Tuesday, February 28, 2012
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