Friday, March 22, 2013

ES Key Levels and Trade Plan for Friday 03/22/2013

E-Mini S&P 500 Futures
Overnight, Responsive Buyers held that 1535 Support (to the tick) and pushed ES back above the 1540-1541 short-term resistance. Heading into the day, we have Initial Support at 1539-1541. If the upside is really gonna play out here, ideally Buyers should hold ES above 1539-1541. Below it, we have the Micro Bull/Bear Zone at 1535-1537 but that Zone has been tested a few times now and Sellers could push through it if we head back down there again with any sort of conviction, i.e. on rising volume and stronger downside momentum. The next main support area below 1535 is 1527.25-1529.25.

On the upside, we have Pre-Market Resistance at 1545-1547 followed by Initial Resistance at 1549.75-1551.75. Although we could get a rotation at the 45-47 Pre-Mkt Resistance, the primary upside objective above 1539-1541 is the 1549.75-1551.75 Initial Resistance Zone. We'll judge the strength of the market once ES reaches Initial Resistance to decide what to do next. If volume and internals are healthy, we'll simply use Initial Resistance as a profit target on Longs. If it looks like the market is running out of steam (below average volume and modest upside NYSE TICK readings), we'll consider taking a Short at Initial Resistance targeting the 1545-1547 Zone. Above 1551.75, we have Resistance at 1555.25-1557.25, which provides better Trade Location for Shorts.

Overall, there aren't any scheduled economic reports today so we could get a range-bound, Balanced session. We'll keep an eye on relative volume and the NYSE TICK to gauge if the day type is playing out as expected. Short-term bias is Bullish above 1539-1541.

Econ Data

5-Minute ES Chart with Key S/R Zones + Volume Profile
Click to enlarge

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