May 18 2010 ES Prep Posted

Premise for this morning is to look for potential inside support at 1135.50. Price is making a strong move up off 1116.00. If inside support at 1135.50 holds, look for extension of 1142.00 and grind up to 1159.50. If 1142.00 holds or extends and fails, look for test of 1124.25 and sideways market 1124.25 - 1142.00 with a downward bias. 1142.00 is a key area for bias. Bias will be down if this holds and sideways to up if it extends and continues. I will look to initiate longs off 1135.50 and pullbacks off 1142.00 if price extends without a retest of 1135.50. I will look to short extension failures of 11420.00 and breaks of 1135.50. I will execute at extremes and look to hit pullbacks and continuations at good prices.