This Is One Way To Detect A Potential Breakout Failure

The market is on hold
until the Fed announcement
on interest rates decision. As you can see
below, the S&P 500 is trapped in a narrow range.

10:08:14 (from TradersWire)




Action

Symbol

Order Type

Setup

Stop

 Target

Current Price

Posted By

Sell

ES sell at the market overbought 1165 1161 1163.50

TK

ES (S&P E-Mini) gapped down
at the open (regular sessions only), but it immediately reversed to the upside.
At 10:00 AM, ES was attempting to take out Monday’s high. It appeared a breakout
was imminent. Although volume was picking up, I noticed the stochastic was
showing a negative divergence. I decided to place a sell short order at the
market.

10:13:06

Follow up on ES

Cover half to take a 1-point gain. Move stop to breakeven. 

If you have questions, feel free to
mail
them to me.

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