Sentiment could be about to change
Tuesday’s session was a gap & go & fail
event. Traders who tried shorting into the ascent for 5.5 market hours got sand
repeatedly kicked in their faces. The final 1.0 hours of trading were a
completely different game… much like our beloved Miami Dolphins versus the
Buffalo Bills from the final quarter on last Sunday. A very interesting
development, probable change in short-term sentiment coming soon!
ES (+$50 per index point)
S&P 500 popped to session highs, coiled up in a
2pt range midday and got slammed back to the turf on accelerating volume (not
shown) to end the day unfinished. What went on between the bells was clearly
bearish by the end: downside continuation and tests of support early are
probable today. 38% of the most recent swing will be stacked with sell stop
orders, for sure.
ER (+$100 per index point)
Russell 2000 led the downside “rally”, a
southbound surge if you will. Closed unchanged for the day, but bulls know
better than that. 689.50 is the first high side resistance today, and 691 is not
likely to break unless everyone who dumped small caps yesterday has a total
change of heart today.
Friday and Monday micro-range sessions were followed by a reverse “V”
move on Tuesday. Overall it is a period of market indecision… with downside
having the slight nod off opening bells today.
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.