Volatility died yesterday afternoon and continued into the Asian and European session, creating a small overnight range. There was plenty of economic numbers plus Fed speakers today to liven things up. The pre-market numbers mostly inline with expectations (Jobless Claims, PCE Price Index, and Personal Spending), however Personal Income was up. After already breaking higher earlier, the US stock markets decided the net from the economic numbers was bullish and started pushing prices to new highs. By the cash open, institutional buyers were trying to move the ES beyond the R1=06.75 area. Price slowly started moving up into the 10am EDT Pending Home Sales and potential market moving comments from the NY FOMC Prez Dudley. Homes Sales blew away estimates and the US stock markets sold the news. On the move back into the R1 and DTG 05 level which had been stretched higher by the morning’s price action on the R1, I posted in chat that the R1 area could be good for a continuation long opportunity. The trend has been in a strong uptrend which makes long trades attractive. A weak long opportunity unfolded (it was weak because institutional buyers were not participating), but given the support area and strong uptrend, it was worth a shot.
|Below is member only content. Not a member? Subscribe and join the discussion!.|
Click here to become a member