Monday, February 7, 2011

E-Mini S&P 500 Futures Trade Plan for Monday 2/7/11

Notes for Sunday night Session (posted Sunday evening)
Friday closed with Buyers in Control, but the new yearly high was made on mediocre market internals, which makes it risky to initiate new Longs up here. 1297-1298 is a Key Support Area to keep in mind. I anticipate that area to hold if the market is to continue heading higher. A break below 1297 would be an early warning sign of a shift in Control from Buyers to Sellers. We also have short-term support in the 1303-1304 Area. On the upside, the next significant Resistance Area is at 1314.50-1316.50. I'm looking for the market to build a Balance Area at higher prices this week.

Trade Plan for Monday 2/7
Last night's post called for higher prices and identified the next significant Resistance Area at 1314.50-1316.50. ES broke out to the upside in the overnight session, and the buying shut off 3 ticks ahead of Resistance. I'm looking for the market to build a Balance Area at higher prices, and will be looking for Long opportunities on pullbacks into Support. I'm anticipating rotational trade and a Balanced Session, so I will also look for Responsive Sellers at the Resistance Zones, but given the overall bullish Context, there's more edge on the Long side. Bigger picture, Buyers will remain in Control as long as ES holds above 1297. On the day time-frame, I expect ES to hold above 1303.25, and I expect the 1321-1323 Resistance Zone to cap the upside. The only catalyst today is Consumer Credit at 2:00 PM (CT). Keep an eye out for any new developments out of Egypt.

Econ Data
Consumer Credit at 2:00 PM (CT).

5-min Chart with the EMiniPlayer S/R Zones

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