Looking to go long

A brief recap: the daily chart has corrected about 40 points, more than I had initially expected, then the market started rising three trading days ago into the employment report which came in strong. There is a FOMC announcement tomorrow and I anticipated a small drop until then since there are expectations of some hawkish comments.

Here is a daily chart of the June contract.

My intention is to take advantage of this small correction and go long for a move to 1400. I expect such a move because the economy still has room to accelerate, the 5 day ema of the put/call ratio is still depressed and the breadth is solid on the rebound until Friday.


The plan sounds good but the market has to agree too.

If, initially, I was looking for a 15 - 20 point drop to enter on, now the market looks tight so that I am ready to buy even only a 10 point correction today or tomorrow - only if conditions seem right.

Here is a short term (3 hours) Globex ES June contract. I have highlighted my preferred level to go long - around 1360.

June ES 3 hours chart