After yesterday’s 38.75 point sell off which was first fueled by China missing GDP expectations and later the Boston Marathon bombing, it was very difficult to visualize what could happen today. Usually after big move days, the markets either continue with their moves or take a breather and spend a day consolidating. The ES had already bounced back to it’s down trend line during Globex. The morning’s economic reports were slightly bearish to neutral weighing on the ES which backed off the down trend line and was positioned to test again as the cash market opened. The ES pushed above the Globex high were it stalled and unfolded into today’s short opportunity. It took a long time for this trade to unfold as the ES started to consolidate under the down trend line. After a half hour of grinding, the trade turned into a coin flip where it could eventually break out in either direction. Luckily for the trade, the ES eventually broke down.
|Below is member only content. Not a member? Subscribe and join the discussion!.|
Click here to become a member