May 172013

This morning we had the Consumer Sentiment report at 9:55am EDT and Leading Indicators at 10am EDT.  It’s options expiration day and the institutions were very active.  Both reports beat expectations and the institutions were buying heavily after the numbers, but the ES stalled 3 ticks short of it’s all time highs.  All the buying was absorbed, but order flow never showed the sellers take control and provide a clean short opportunity.  If the sellers could break 1656, there was a chance they could take control.  They did pop the ES through 1656 and forced price down 3 points, but that was it.   The ES went into a consolidation mode inside it’s 6 point range.  I posted in chat that traders would work the range for a while and there was potential for a breakout later.  The breakout occurred late afternoon and the ES rocketed to all-time highs for the 12th time in the last 15 trading days.  Unfortunately, the options expiration volume masked any order flow clues for an entry opportunity.  No example trade today.

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