Wednesday, November 16, 2011

E-Mini S&P 500 Futures Trade Plan & Chart for Wed. 11/16

Trade Plan from
ES balanced in a wide range in the overnight session, with the Selling shutting off ahead of the 1237.75 open gap, while 1258.75 capped the upside. Heading into the day session, we have the Bull/Bear Line in Sand at 1248-1250 (Previous VPOC at 1249) and Initial Resistance at 1251.75-1253.75 (Open Gap at 1253.75). On the downside, we still have an Open Gap at 1237.75 and a NVPOC at 1237. The 1229-1231 Initial Support is KEY for Buyers, and a break and hold below it could eventually bring the NVPOCs at 1214 and 1207.50 into play. On the upside, holding above 1244 would open the door for testing the Bull/Bear Area as well as the Resistance Zones above. On the upside, the 1256.75-1258.75 Resistance Zone is KEY. A breakout above that area would eventually bring the NVPOCs at 1273.75 and 1278.25 and the Open Gaps at 1273.25 and 1281 into play. The next primary catalyst in pre-market is Industrial Production at 8:15 AM (CT), while the primary catalyst during the day session is the Housing Market Index at 9 AM (CT). The short-term bias heading into the day is bearish, but I expect Responsive Buyers at the Support Zones below with 1229-1231 being the one to hold. Use the Opening Range and Opening Type to establish immediate bias off the open. Sellers are in Control below 1244-1246 (Pre-Mkt Resistance).

5-minute Chart with Support/Resistance Zones

View full size chart

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