The Japanese GDP came in way under expectations which put downward pressure on the global stock markets overnight. Thus the ES started it’s regular trading hours in the whole. With no economic data other than the Treasury Budget in the afternoon, it was expected to be a quiet trading day. For the last several months, the bulls have taken advantage of quiet days to grind the ES slowly upward. After the cash opened, I was surprised by the strength of the bulls which sent the ES into the back of the DTG 84.50 level. As I posted in chat, I was looking for a move back through yesterday’s close of 86.25 and then institutional selling. The ES did setup nicely below the 86.25, but the institutions were quiet and not selling. The ES then bounced off the VWAP and tested new highs against the pivot point at 88.25 where it double topped and institutions finally started selling, providing today’s example trade opportunity.
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