01/08/2013 Example Trade

I came into this morning session fully expecting similar volatility to yesterday (i.e. light volume and low volatility).  The published DTG 54 level today was wide; 5 points wide.  Yesterday’s entire range was only 7 points.  So the DTG 54 level was a bidirectional area where price could find resistance moving up or later support moving down.  Yesterday’s close and the pivot were both at 55.75 which provided a nice line-in-the-sand price to key off of.  The ES tested 55.75 shortly after the cash open.  The retest setup today’s example trade.

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