This was an interesting morning. The ES dropped right down into our 66.50 / 68.50. It was a great scalp opportunity, but the price bounce was too hard for any trade opportunity that involved a second push. After spending some time meandering around the overnight 73 VPOC, price moved up into our 76.50 / 79 level. Right below this level is 76 YC which is the zero line for the day and often acts as strong support or resistance. On the second push into our level, price failed to reach the previous high and closed right at the YC. If the YC was not there, I would have considered this a potential trade opportunity. As it was, the YC area had not been cleared and there was too much risk that price would not be able to push it’s way through it. Also since the level’s LVN area is wide, there was also no real resistance above to help keep price from probing higher.
After another rotation, price moved higher to the back of our 76.60 / 79 area which I consider as a first push into the back of the level. The next rotation was an opportunity worth waiting for. Buyers were trapped above the previous high at the top of our large level area. Now there is room back down into the YC which makes a good target.