There was capitulation like behavior last night in the GLOBEX session that saw the ES reverse off the 1380 level. Underlying action since has been bullish.
Key opportunity to get short as we approach 1300 on the ES. Look for resistance to hold up around 1300. Just quick note about the previous lows being broken and the expectation of continued weakness. Although we are looking very bullish intra-day, a retrace back up to 1300 is perfectly normal and as long as the move doesn't confirm higher, the weakness is still in play and we should be able to expect further lows. I will be looking for opportunities to get short between 1299-1302. Key is to wait for resistance to become apparent in that range. Then it is a safe entry short. Just don't defend the position if continued buying strength comes in after.
You could consider getting short sooner, but there is the potential to take more heat than is preferable here at the 1297-1298 price level...
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ES trading now at 1299. I'm waiting for a signal to get short...
ReplyDeletePatience... No sign to short just yet...
ReplyDeleteShort ES 1301.75
ReplyDeleteNo defense above 1305
ReplyDeleteMay have to wait till after the close to see a down move from here
ReplyDeleteHolding this short into the evening session. Can consider lowering stop now to break-even or around the high at 1304
ReplyDeleteTarget on this short is lower 1290s
ReplyDeleteCover ES at 1290.75 for 11 point gain
ReplyDelete