Here are today’s key levels for emini traders
Tuesday’s session resumed the dominant
trend lower as emini price levels opened lower and never looked up from there.
An early surge lower settled into sideways chop as one would expect before the
final hour sell-program plunge. These late-day selloffs have become a pattern…
each week we see one or two such events.
The only way such closing bell swoons are
possible would be an absence of buyers on the other side of those trades. Sell
programs in the futures would be met with buy programs in stock markets from
eager bulls viewing such plunges as bargain-basement opportunity. Not happening.
There are no big fund managers anxious to step in front of sell programs right
now… hence the entrenched downtrend we have expected to continue.
ES
emini
(+$50 per index point)
S&P 500 futures opened in a gap-down move,
surged down to S2 levels and played bump & grind around that magnet for a few
midday hours. Once the 2:00pm EST mark arrived, it was clear sell signals all
the way. Very profitable potential in the morning and especially the
afternoon… trend periods are by far the easiest and biggest money trades to
work within.
ER
emini
(+$100 per index point)
Russell 2000 futures did the same. Rapid surge
down to S2, bumpy bleed lower and the closing hour crush good for +8pts in one
or two pieces with relative ease. Gotta love days like this… sell signals all
the way, several of them offer significant profit potential.
ES (+$50 per index point)
Weekly chart of the S&P shows price action back
inside our predetermined range. 1242 – 1268 might be the overall roll for some
time to come. 1220 and then 1200 would be next upon any further selling ahead.
ER
(+$100 per index point)
Small caps might magnetize near 705 ~ 710 is
further selling is staunched. Otherwise, 680 and then 640 are two of several
zones of attraction below.
Summation
It’s a mighty fine time to be trading emini futures without any inherent
directional bias. We absolutely do not care if markets go up, down or sideways
in dramatic fashion. We only care that price action moves in large enough range
to wrest consistent profits from. Right now, that is happening on a regular
basis and probable to improve from here.
Today’s FOMC minutes released at 2:00pm EST
have potential to rattle all financial market tapes real hard. Sell resistance
and clear breakdowns at every opportunity until that tact ceases to work. It
should work for quite some time, and probably in dramatic fashion to boot!
Trade To Win
Austin P
(Online video clip tutorials… open access)
Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures, equity
options and commodity markets. Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.