March 28, 2011
The equity markets have regained solid footing and put together a 8 trading session rally. Price is now entering a potential resistance area and is in the middle of a large trading range that formed in late February through early March. ESM1 formed a consolidation area Friday in the 1310 area and will need a pickup in volume to move away from this area. The past two sessions have recorded lower volume.
We are watching 1314.50 as a potential upside breakout price and 1305.00 on the downside. Above this we see 1321 and 1327 being important and below the big round number at 1300 and then 1297. Wednesday is the last day of the month and quarter and we may see some gyrations related to end of the period window dressing but often the first trading day of the month is the strongest so keep that on your radar for Thursday.
