Here are the levels I’m watching today
Tuesday’s session was
high-odds to break directionally, and it did. Monday’s contracted,
gyrational, spiky tapes usually lead to wide range or directional swings soon
after. The clustered stop orders domino out, new orders push the pile and happy
times are there for savvy intraday traders to thrive upon.
ES (+$50 per index point)
S&P 500 futures opened on sell signals in the
morning, but quickly shifted to the buy side and kept that bias all day. There
were absolutely no valid sell signals past 10:30am EST, and any traders who
ignored that while hoping to sell into tops experienced first-hand why the trend
is our friend and fading clear trends is pure folly.
R1 (dashed red) and R2 (solid red) values were
mere speed bumps on the path to R3. Traders who tried shorting each of those
levels may have caught a couple points on the last play of the day, which was of
course exceeded by previous losses when they should have been buying instead. I
for one sure am glad we gave up (many years ago) blindly trying to catch price
turns inside of confirmed trend sessions!
ER
(+$100 per index point)
Russell 2000 futures lagged the YM and ES futures
at first, but then caught some fire soon after. ER burst upwards off its pivot
(navy blue line), flaming hapless shorts at the R1 value along the way. We can
see their stop-loss points being hit… that created the long green surge candle
up to the R2 value.
From there, price action coiled below the R2
until it made one final push upward into the closing bell. That lift was erased
by end of trading, as often happens when trend sessions finish.
ES (+$50 per index point)
S&Ps failed the first attempt to break above
bearish 62% resistance (navy blue arrow) before stabbing lower from there.
Yesterday’s attempt bear-ly (no pun, but it works) eked above this line. Another
daily close above 1280 will have shorts squeezed again and longs lured back into
what they hope to be a rising market trend.
ER
(+$100 per index point)
After a break & close below 62% of the bullish
grid we measured in previous posts here, the current bearish grid in play held
price action on a daily close to the tick at 38% retrace. Not unless 728+ is
taken out on a daily close will this index return back to bullish status again.
The 700 level and then 660 level are next two magnets of attraction below.
Summation
Solid profit potential for intraday emini traders on Tuesday. That was expected
following Monday’s low range, lower volume session. No complaints from this side
of the screen on majority of recent day’s price action. Up, down or sideways
does not matter to us in the least… just keep the intraday swings of normal to
above-average spans, and everything will be just fine indeed!
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.