It was apparent coming into this morning that the bulls would look for any excuse to push the ES to new highs. German PMI data came in strong helping fuel the Globex session and we had the ISM Non-Mfg report at 10am EST. A small beat in expectations and I expected the ES to spend much of the day grinding higher. Thus my preferred trade direction was up. We have no market structure above to base DTG levels on. The best I could do is use calculated pivot points with the R1=33.25 and R2=40.50. I thought the R2 was in a good area for my daily high frame which is drawn on the level recap above. For the first 20 minutes after the cash open, the ES worked it’s way up and through the R1 pivot. I posted in chat that I’m thinking about a long on a pullback either to the R1 or the 30 area. The R1 area turned out to be a good place to get long as I explain the order flow in the annotated chart below.
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