Wednesday, February 8, 2012

E-Mini S&P 500 Futures Trade Plan & Chart for Wed. 02/08

Today's Trade Plan
Overnight, ES bounced off the previous day's VPOC at 1342.50 and the Buying shut off 3 ticks ahead of the 1349 Resistance. Heading into the day session, we have Initial Support at 1341.75-1343.75, and the Micro Bull/Bear Zone at 1338.50-1340.50. For upside continuation, ideally, Buyers should hold ES above Initial Support. A break below Initial Support would provide an early sign of weakness, and we'll use the 1338.50-1340.50 Micro Bull/Bear Zone to establish directional bias. On the upside, we have Initial Resistance at 1349-1351 (2011 RTH High = 1350.25), followed by 1356 (2011 Globex High = 1356.50) -- expecting Responsive Sellers to be active at Resistance there (profit-taking). A break and hold above Resistance could trigger stops and result in a short covering move, resulting in a quick push higher. Bigger picture, Buyers remain in Control, but we're hitting up against some major Resistance now, and markets don't usually blast through these areas on first attempt. Today's quiet U.S. econ calendar leaves the focus on Greece debt-talks. ES is set to open above Value.

5-min Chart with Support/Resistance Zones

View full size chart

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