Notes for Overnight Session (posted Tuesday evening)
At this point, Buyers are in Control and I'll be looking to buy pullbacks into Support tomorrow. The existing S/R Zones are in-play, and we have Resistance at 1303.75-1305.75, followed by 1307.50. I expect ES to test 1303.75 at some point tomorrow, so I'll be looking to Short if price moves too far away from that level.
Trade Plan for Wednesday 2/2
It's easy to get caught up in the charts and forget that the markets move because of the participants (the people), and half the U.S. is dealing with a severe snow storm today. Chicago got hit pretty hard and CME has delayed the pit open till 10 AM (CT) -- Globex is unaffected. Participation is likely to be lower today, which means a narrower range, and limited opportunity. After yesterday's Trend Up day, buying pullbacks at Support is a safe strategy. We could get another new high today, but I anticipate Responsive Sellers to be active and sell into it. If we get a push beyond 1306, 1303.75 can be used as a target on Shorts. On the downside, I anticipate the Selling to shut off by the 1290.25-1292.25 Support Zone, if not sooner. I expect a Balanced session, so my focus will be on entering at the edges, while using the middle of the range as a scale-out target and the other side of the range as the final target. A break below 1290 could turn this into a failed breakout -- again, this isn't expected but it's good to be prepared.
MBA Purchase Applications at 6:00 AM (CT), Challenger Job-Cut Report at 6:30 AM (CT), ADP Employment Report at 7:15 AM (CT), and EIA Petroleum Status Report at 9:30 AM (CT).
5-min Chart with the EMiniPlayer S/R Zones