Tuesday, February 1, 2011

E-Mini S&P 500 Futures Trade Plan for Tuesday 2/1/11

Notes for Overnight Session (posted Monday night)
The existing S/R Zones are in-play. The expectation is for the market to remain Balanced in a range heading into the ISM Mfg Index at 9:00 AM (CT) tomorrow morning. Bias is on the Sell side for now.

Trade Plan for Tuesday 2/1
At 1290+, ES is trading within our Initial Resistance Zone of 1290-1292, and the expectation is for Responsive Sellers to be active at the open. Price action in the overnight session is Bullish, but considering the Trade Location, Risk is on the Long side at 1290+. The primary catalyst today is the ISM Mfg Index at 9:00 AM (CT), and new Buyers are unlikely to commit capital up here ahead of that econ #. On the downside, we have 1285-1286.50 as the initial target, followed by yesterday's Close at 1282.50 as an extended target. In the event that we get buying through 1290-1292, I'll still look for the upper Resistance Zones to provide rotation but I'll be cautious on taking Shorts since a test of the recent highs could be in-play. We are working within the 1267.50-1299.50 Balance Area and it's a risky setup for Buyers and Sellers here.

Econ Data
Motor Vehicle Sales, ISM Mfg Index and Construction Spending at 9:00 AM (CT).

5-min Chart with the EMiniPlayer S/R Zones

No comments:

Post a Comment

At the minimum, please provide your name or Twitter handle when posting comments. Do not post as Anonymous. Comments that contain links to commercial websites will be marked as spam.