The S&P Futures (ES) traded down almost to the base of my 1063-1066 buy range in the overnight session and is now trading up over 1068, which is still down a half percent since yesterday's close.
What to look at after the open?
1: We'll have to think about the possibility of filling the gap after the market opens which would be between 1073-1075
2: We could possibly run down and officially fill the gap from 7/21 which would mean we would revisit the overnight lows down in the 1063s. We could make slightly lower lows down to 1060-1061. This will be an area to watch. We could see a reversal from here to move up and fill this morning's gap at 1073-1075.
3: We test the overnight lows and break down through them.
Support comes in below at 1053-1055, then at 1041-1043
We'll have to watch and see if the market does hold support down in the 60s. I think there is a good possibility that support does hold. In any case, I do not feel comfortable taking a position until we reach the lower 1060s (potential long) or if we tick back up to 1073 (potential short)...
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Hmm, wonder why I didn't feel comfortable buying or selling in the range where we have been trading... oh, maybe because it is just algo driven chop, very difficult to predict movement, good way to lose money unless you know how to scalp against the algo... I am experimenting with it, but don't have any solutions to offer yet...
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