We got the rally higher that I expected, it just happened a little quicker than I thought. The latest new high on the ES (M June 2013 Contract) came in right at the 1595-1596 resistance I noted in my last post. From there markets sold off and, yes, it happened to be the 1st of May. I am beginning to entertain a more bearish stance from here and prefer selling rallies right now. To maintain this bearish outlook, the 1588-1590 (ES) resistance needs to hold in the short-term. This level also makes a nice price to consider entering a shorts if you're not already short.
I'll be watching the the market reaction following this morning's ECB rate decision (7:45 am EST). If the market reacts positively and closes the day strong, I'll reconsider my preference to sell rallies.
In any case, I'm speculating that the time to sell the markets "May" be upon us. Today's action will be important in establishing a market bias looking forward.
Levels to watch on the ES (M June 2013 Contract):
Resistance above at: 1583-1584, 1588-1592, 1596-1597, 1607-1608
Support below at: 1569-1571, 1562-1563, 1551-1552, 1539-1540
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