The market opened in our 1.50/2.75 area and rotated around Friday’s close waiting on the 10am new home sales report. At 330K, the new home sales beat expectations and sent the market into our next 4.25/6.50 level where it began rotating. Buyers push the market above 1106.75 and tried hard to keep it moving. It became evident that those traders could be trapped and it was worth a short trade. It took a long time (over 10 minutes :)) for this short to develop. Finally, the trapped trader’s stops started getting hit and the ES tumbled down through our target.
For the rest of the day, the best trade opportunities will be the levels above the current high of 1107.50 and starting with the 1097 level at the OL.