Yesterday's downward price action suggested that more weakness is in store for the US markets. The only technical sign needed to confirm the weakness is a lower low, a move that would need to see the ES trade below 1293.50.
Asian markets, NIKKEI, TOPIX and HANG SENG all down big on the heels of the sell-off yesterday in the US. European markets, FTSE, DAX and STOXX also currently trading lower.
I won't be surprised to see the market consolidate between 1296 and 1312 today. We may have to wait another day to see a follow-through to the downside. I like shorts off the 1310-1312 today and/or selling the up-ticks into resistance. I expect the ES to make its way down to 1277-1280 this week. That should be a short-term buying opportunity.
Levels to watch today on the ES:
Resistance Above at 1305-1306, 1310-1312, 1319-1320
Support Below at 1293-1295, 1289-1290, 1285-1286, 1277-1278
Subscribe to:
Post Comments (Atom)
Short ES at 1308.50. Looking for 4-5 points on this trade.
ReplyDeleteHolding the position. Not adding an additional contract yet. Will add another if ES trades higher and finds resistance at 1314
ReplyDeleteAdding 2nd contract at 1312.50 after failed move higher. I am willing to take some heat on this trade based on bigger picture weakness and based on resistance levels.
ReplyDeleteAverage Entry now 1310.50 - 2 contracts
Will look to cover 1 contract at 1308.50-1309 putting entry of remaining contract at 1312-1312.50.
ReplyDeleteCover 1 contract at 1308.50. Entry of remaining contract now at 1312.50
ReplyDeleteTarget now 1305-1306
ReplyDeleteCover at 1305 for 7.5 point profit
ReplyDeleteI like shorts up near the highs, however, haven't entered a position yet..
ReplyDelete