May 14 2010 ES Prep Posted

Premise for today is to see if 1142.00 support holds. This is a major area. If 1142.00 holds, look for test of 1159.50 potential inside resistance. This will be another key structural point. Could see a range develop 1142.00 - 1159.50. If this happens, there will be a downward bias. Overall bias is sideways to up with a major range of 1142.00 - 1174.50. Base premise is if 1142.00 holds, look for retest of 1174.50 but watch for lower high at 1159.50. If 1142.00 does not hold, market could test 1100.00 over the next week. I will look to initiate longs of 1142.00 and 1159.50 extension retests and shorts off 1159.50 extension failures. I will look to hit shorts if 1142.00 breaks but will need a good structured pull back. The short side remains tough and prone to get squeezed. It is not worth it to repeatedly short this market to catch the 1 or 2 big moves that could happen intra day. I will wait until a major bias change to aggressively short.