Still Looking for Another 1.5 Points

Markets have made up almost all the ground they lost yesterday and are now consolidating a bit. It may look tempting to short the market here, but I recommend waiting. The ES still has 1.5 points to go before official gap fill at 1181. You may be able to get a few points if you managed to get a short entry above 1179. But don't defend that position as I fully expect a retest of Monday's highs and official gap fill above 1181. You can consider a short entry there, but be careful as we will likely make new highs, possibly to 1184. I continue to like shorting opportunities in the 1190s on the ES, but there will be short scalp opportunities on the way up as well. If we get a down-tick now to 1175-1176, I will be looking to be a buyer back up to the highs.