May 13 2010 ES Prep Posted

Price is moving up strong. Premise for today is to see if the trend will continue or if the price will congest prior to making a continued move up or correcting down. I am looking for a pull back to potential inside support at 1165.50. This will likely be extended a bit prior to reversal. I will look for a washout fake down and reversal up. If 1165.50 holds, premise will be sideways congestion at highs 1165.50 - 1174.50 to up. I will look for a late day or Globex break of 1174.50. If 1174.50 breaks in the early AM, just follow the trend up. If there is no inside support at 1165.50 and price can clear 1159.50, look for a retest all the way back down to 1142.00. I will look to initiate longs off 1165.50 and play the potential sideways congestion and trend up. I will look to initiate shorts if 1165.50 breaks with structure but will be quick to cover if the price stalls. Keep in mind that the short side has not worked in the past 2 months and short trades are prone to get squeezed.