July 27 2010 ES Prep Posted

***UPDATE to prep 9:15 AM EST....I keep illustrating a test of potential inside support but the freight train continues to drive up. The price will need to come back inside 1116.50 resistance and push through 1114.75 to have any chance of a correction. If price bounces of 1116.50 or just pushes up from here, I will go with the grind up and attempt no shorts until a lower low is put in.

Premise for today is similar to the past week. However, there will be a higher probability of a pull back prior to a continued attempt up. I will look for inside support at 1106.75. This is deep inside support coming off a stretched leg and will be prone to create a sideways market 1106.75 - 1116.50 prior to breakout. premise is the if price does not pull back as it has not for the past week, continue to hit continuations on the grind up, if 1106.75 does not hold, look for test of 1099.50 and tough action in that area. Price continues to be stretch and is due for a correction but has enough steam to push to 1150.00 from here. The short side will remain tough. Keep in mind that it is not worth repeatedly getting stopped out on the short side to hit the one correction down. This action is prone to squeeze.