July 9 2010 ES Prep Posted

Premise for today is to see if power move up continues or if it exhausts and pulls back. I will play potential inside shallow support at 1063.25. I will look to initiate longs upon confirmation that it has washed and held and shorts if it breaks and gives a good pullback to sell. If there is no shallow inside support at 1063.25, next level of support is 1055.50. If this area breaks, I will look for potential covering and a downside correction. I will stay with the trend up even though price is very stretched and cautiously hit shorts if the price starts to correct to the downside. The short side remains tough as virtually any confirmed entry gets squeezed prior to continuing down. This move needs to correct soon but it is not worth continuously being on the wrong side trying to hit it. I will wait for a clear reversal to aggressively hit and hold shorts.