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