E-Mini S&P 500 Futures
ES is trading just a few points away from its high of year (1165.50), and we could easily test and even break through that level tomorrow. The Nasdaq (NQ) made fresh highs on the year on Monday. The Russel and Dow are also trading close to their highs on the year. There are three scenarios possible here: consolidation, break-out, break-down. Given the recent strength, I'm anticipating either consolidation or break-out to the upside. Based on the current price action, my bias is Bullish. The Bull/Bear Line in Sand is 1153.25; bias would shift to Bearish below that level. We have the Existing Home Sales data out at 9:00 AM (CT); that could be the catalyst that motivates traders to enter the market with some conviction. We are seeing some volatility re-enter the market as well. The day session range over the last two days has been 14.75 points and 15.50 points. Keep that in mind when initiating counter-trend trades, or setting targets for trend trades. Trade well!
Redbook at 7:55 AM (CT), Existing Home Sales at 9:00 AM (CT), Treasury Secretary Tim Geithner testifies before the House Financial Services Committee at 9:00 AM (CT)
ES - Daily Chart with Volume Profile and Key Levels