Below is the current daily chart for the March 2012 ES contract.

The target was derived as shown by the red trendlines; October's high to November's low multiplied by 1.272 and projected upwards. There are additional targets above, but reaching the 1.272 extension of such a large swing tells us that this swing is potentially overbought. It would take quite a breakdown to shift the pattern to short side on this timeframe, but starting here we certainly have a reason to be prepared for pullbacks and consolidation.

Inflation spun by politicians is the great "boogie man" of economics. Bond investors loath it as inflation reduces real returns. Central bankers detest it because if it shows up they are blamed and the politicians control central bankers' employment. The general public hates it because they have been told repeatedly it is bad and because in situations of hyper-inflation spending power is substantially reduced.

Both the Dow Jones and S&P 500 face price challenges at critical levels currently, particularly that of the rising 20d EMA. Let's take a look at these levels to watch and perhaps develop trades on any breakout from these levels.

In my 17 years of trading and having traded for a hedge fund, it is Proper Position Sizing and Capital Allocation which has kept me consistently in the game as a professional trader. Even if you have great position and daytrading systems and software, if you do not understand how to properly size your positions, you are unlikely to achieve a comfortable level of consistency and you risk blowing account after account.

Learn to trade without bias. Do not let news affect your trading strategy. But you should know your economic news every day before you start trading. Recently a FOMC meeting caused quite a move in the markets.

The big news recently has been Apple's report during the closed market, it has opened high and seems to be climbing higher. Google has dropped back from its earlier gain. We also look at gold, silver, and oil today.

One of the most important aspects of trading is correct money management and unfortunately it is a topic that many new traders overlook. It can be the difference between a trader who is consistently profitable and one who erodes their account.

Today's US Equity Market Commentary reviews the upcoming week commencing January 28, 2012. Nick McDonald gives a quick overview of last week's action in the major indexes for the US equity markets and gives a technical outlook for the coming week, with a focus on the mini Russell futures contract.

Run time: 8:05 minutes

10-Year Treasury Note - 01/30/2012

The JS Services' Price Map is a series of support and resistance levels that are qualified and weighted into a powerful trading tool. The system incorporates an array of technical studies, drawing from both classical and proprietary analytical techniques, into a risk management tool that pinpoints shifts in market momentum for trade entry and exit. The Price Map is designed for the current trading session.

Preview this week's market with the Monday report: 10-Year Treasury Note - 01/30/2012
For each days report, be sure to read the full article every day.

The E-mini S&P has been rallying due to the announcement from Bernanke this week. Levels are holding as expected. There is a preference for the long-side intraday with an interday bias as well.