Day trading after a 3-day weekend is always a little difficult. The chart calculations for many traders are different as some use values from the close of the previous week and some use values from the CME shortened trading day. When trading equity futures, one generally wants to use chart values for calculations from the last day the cash stock markets traded. The logic is that the equity index futures follow the cash and stock indexes.
Volatility picked back up some today, initiated by the 10am EST housing numbers. The numbers came in poor while buyers were trying to push price to new heights through the DTG 81.25 level. There was a short trade opportunity after the retest of the 1481 swing top, but order flow did not cooperate so it’s not today’s example trade. Today’s example trade came after price bounced off the DTG 76.25 and was unable to take out the 75.75 low of the day.
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