Thursday, March 14, 2013

ES Key Levels and Trade Plan for Thursday 03/14/2013

E-Mini S&P 500 Futures
The Context was set for a break of the recent 3-day range and ES broke out to new highs in the overnight session.

Considering we have no other economic catalysts due today and have several important economic reports scheduled for tomorrow (+ quad witching tomorrow), it's unlikely that ES will continue to move up in a linear fashion. By that, I mean Contextually, there's a higher probability of Responsive Sellers being active at Resistance for a pullback to the 1549.25-1551.25 Pre-Market Support (breakout test) and potentially the 1544.50-1546.50 Initial Support Zone. The overall context is still Bullish though so we will look for Long setups on pullbacks into Support, but we'll also be mindful that the upside could be limited to the 1555.50-1557.50 Pre-Market Resistance Zone or the 1560.50-1562.50 Initial Resistance Zone. So, unless we're seeing strong momentum to the upside and strong internals indicative of a Trend Up day, we'll look for Short setups at Resistance and Long setups at Support.

Heading into the open, we have the overnight VPOC/HVN around 1553.25-1554.25 and that area can be used as a very short-term gauge of strength/weakness. ES is set to open above Value and the 1st test of 1555.50-1557.50 can attract Responsive Sellers targeting the 1550 gap and 1549.25 prior VPOC. 1544.50-1546.50 Initial Support is a good area to look for a Long setup, targeting 1553.25-1554.25 and 1555.50-1557.50.

Econ Data
Jobless Claims, Producer Price Index, and Current Account at 7:30 AM (CT), EIA Natural Gas Report at 9:30 AM (CT), 30-Yr Bond Auction at 12:00 PM (CT), Fed Balance Sheet and Money Supply at 3:30 PM (CT).

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