One more thing to note however, the Semeconductor index (SOX) closed as the worst sector in the core sector list. For a sustainable rally to occur, we need the Bank Index (BKX), Securities and Broker Dealers (XBD), Biotechnology (BTK) and the SOX to show strength. The Bank Index on the other hand has continued to break out to new highs.
We had a daily ambush long setup on the ES early this morning at 1172.25 with a target of 1195. While the price action of yesterday and today has put the bears on the radar we’re not going to fight the trade. If we do make it to the 1195 level we will be looking for either a hard sell off or continuation to 1207. Monday’s price action set a nice tone for the week, but intraday setups have been thin. Tomorrow we only have Wholesale Trade at 10:00 AM CST so we could make it to 1195 by the end of the day.