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
Tuesday, March 6, 2012
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