This is my daily preparation for S&P futures (ES) trading and it is for your educational purpose only and definitely cannot be considered as financial advice. There is a substantial risk in derivative trading and it might not be suitable for you. Don't rely on past performance as it is not indicative of future results.
We stay in an uptrend after market broke 2447.5 and enough buying power joined to break
2448.5-2450 area on Friday.
On Monday we had a very balanced day with narrow range around Friday's highs. However, on Tuesday, bullish players used fake breakout downwards from Monday's range to open their long positions and started a gradual rise towards new highs.
Important to observe, that on Tuesday there was observed a significant increase in open interest (20k) and yesterday we had another 25K new contracts opened towards long side. This means that there is enough interest among big money towards upside.
Today we are expected to open around yesterday's high and based on performance of the last few days and as a priority we will be looking for longs, by buying pullbacks. So if we will open slightly above yesterday's high, we would expect to market to pull back towards yesterday's high and if enough support will be observed a move upwards might start from there.
Another support level is yesterday's POC (point of control) 2469 and we still will be looking for long here in case it will be broken another attempt to enter long would be around low of yesterday's value area, which is 2462.25-2463.25. Considering that we are in a such uptrend 2467 might perform also as a support level, as it is another area where noticeable amount of volume was traded yesterday.
After this an attempt to close a gap from Tuesday , with some support might be around 2458. But I would be very cautious about trading here and would join longs only if a weak low would be formed here and price will quickly return back to yesterday's range. If not, I won't be trading below this price.
Regarding targets, I do not expect a strong trend and move above 2480. Though if market will be in active buying mode I will try to hold as long as possible.