It’s the first day of the week, month, and quarter on a European Easter holiday Monday. In addition, we had a few economic reports to potentially give the US stock markets reasons to move. On Friday, the S&P 500 closed at record highs. Were the bull going to continue grinding up or is today going to be the start of a pull back? My thought going into the open was that the bull would try to continue their upward push on prices which was the case after the cash open and the ES reached a new high at 1565. However about 10 minutes before the 10am EDT ISM and Construction Spending numbers, traders decided to wait on the numbers and the ES came off it’s highs in anticipation. The ISM PMI missed big and the market began to sell off to the DTG 59.25 level. Knowing how the bulls have shrugged off numbers of the last few weeks, I was looking for bottoming action in the level. Price made a head fake top with strong selling, but it was in conflict with my search for a long entry so I didn’t consider taking a short. It was a missed opportunity since price tumbled over 7 points to the DTG 54.50 level area. So I waited for some order flow buying indications which took a while but finally unfolded into today’s example trade opportunity.
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