I wanted to point out to ES traders that the last two days have been key price rotations at a significant resistance zone of previously held SHORT inventory. The 868 to 871 area for the current contract had a decent level of held SHORT inventory, formed off two prior price rotations (01/28/09 & 02/09/09) that had created a resistance zone. On the 17th of this month we had our first proper test of this resistance zone which held for over a week. Yesterday and today, we finally had intraday price rotations that have cleaned out that previously initiated SHORT inventory. With price moves well into that held inventory and on up through their "stops" zone, we have what I call an inventory grab that has just played out. This inventory grab event is a result of the perfect area/zone for LONG position holders, from much lower pricing levels, to thin out or dump large chucks of their "in the money" inventory (they cover large portions or all of their positions into a big pocket of resting held short inventory). Now as a result of the last two days price rotations we have a very unique situation. The typical inventory grab will cause very reactive price movements in the days following the neutralization of such large positions. We will most likely make a significant trending move out of this current area of price. Bulls are at a point where it would be most optimal to allow price to move down to lower (better) pricing levels to resume significant buying, for any next wave in a potential rally continuation through this area to even higher pricing levels (900's). Bulls also have to take into account they currently have some gaining momentum, and any pullback of price at this time could actually work against them for potential short term trend continuation. The bears in this situation have their first real solid opportunity to test the strength of this bull rally off the years low. The bears have price now 200 points off the yearly low, with a decent payoff ahead if a low of the year retest move would develop. It potentially pays much better HERE for the bears to take a shot at selling the price rotations off the now concluded inventory grab event. I was a very active seller today with the price probe beyond the area of now neutralized inventory (short covering spike). Bulls were not very likely to add new significant buy inventory at high pricing levels (880's) after they had just cashed out large size positions into the held SHORT inventory zone (870's). The price spike into the 880's today leaves a very definable level of near term resistance to be watched. IMO the bulls will need to challenge this level almost immediately to maintain momentum, and this next few days will be critical.