Look for early selling, then a reversal
Thursday’s session was essentially two
flat coils interrupted by midday sell programs that found no bids in between.
This should set up a high-odds pattern for profits this morning, and perhaps the
entire day ahead of the holiday weekend at hand.
ES (+$50 per
S&P 500 futures were a “no-brainer” to trade
yesterday. Sell signals all the way from opening stroke to roughly 1:30pm EST.
That wedging coil broke sharply as the prem surged to its sell zone… short
near the 1298 zone worked for up to +7pts at the lows.
Any morning session bounce up to 1295 ~ 1296
should meet follow-thru selling that retests or breaks Thursday lows. First pull
back in the morning following a closing bell trend rides the coat-tails of
traders who missed the initial move and jump on the next chance they get.
YM (+$20 per index point)
Dow futures mirrored the S&Ps as they usually
do. 100% sell signals confirmed all the way… sometimes trading really is
simple as that.
11,303 should usher in another round of selling
if hit for same reasons stated in ES post above.
NQ (+$20 per index point)
Nasdaq 100 futures were holding above several
different measures of support when the sell programs hit. It was purely a
momentum push lower from there before dipsters stepped in and bought the closing
(+$100 per index point)
Russell 2000 futures were similar to the NQ:
choppy, small range in the first half of session while sell programs jerked the
entire carpet from beneath long positions. Downdraft from 715 to <710 came in
1/13th of the entire session. Other than that, it was merely two sideways coils
Friday ahead of the three-day weekend may continue the strong upward
trend. Historically, sessions following a holiday weekend tend to be more large
range and/or directional. We’ll see how this one plays out, but early weakness
is probable. After that, continuation of the trend lower of sharp upside
reversal into the afternoon are what we’ll watch for on this side of the screen.
See you in the weekend report posted Sunday
night, and please have an enjoyable weekend!
Trade To Win
(Weekend Outlook trend-view section…
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.