Friday, February 24, 2012

ES Trade Plan for Friday 02/24/2012

E-Mini S&P 500 Futures

The upside move that began yesterday morning, continued in the overnight session and ES tested the 1368-1369.50 Resistance Zone. Heading into the day session, we have Pre-Market Resistance at 1366.50, followed by Initial Resistance at 1368-1369.50. Above 1369.50, we have Resistance at 1372-1374 followed by 1377.25-1379.25 (Buying could shut off there). On the downside, we have Initial Support at 1359-1361 (previous VPOC 1359.25), followed by the Micro Bull/Bear Zone at 1355-1357, which we use to establish directional bias (bullish above 1355, bearish below it). Given the overall Bullish context, the expectation is for Responsive Buyers to be active at every Support Zone, and the Selling could shut off by 1355-1357. A break and hold below 1355 would be a red flag for Buyers. With two econ reports out in the first half hour, the expectation is for a range-bound/choppy open with Responsive Sellers active at Resistance, targeting the gap fill at 1363.

Econ Data

Consumer Sentiment at 8:55 AM (CT) and New Home Sales at 9:00 AM (CT).

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