I missed the first trade opportunity of the day. Price made a surprising 6 point move up starting about 4 minutes before the 10am EST housing news. Once the news hit, price bounced off the back of the DTG 09.50 level. Unfortunately I was not prepared to trade that level and it was too fast in the news volatility to consider an entry. After the relatively ‘good’ housing news, the ES tumbled into the back of the DTG 1300.50 level but after a some grinding, price continued it’s downward trend towards the S2 pivot. Any trade taken in the DTG 1300.50 level most likely were stopped out. The next level was used for today’s example trade. I wrote in chat this morning before the market open that I prefered the 93/95 area to hold the low of the day. The S2 pivot area held strong a couple of points above the 93/95 area. Once price finally broke out, the sellers jumped on for a quick drop but… they could not push price past the top of the level. The rest of today’s trade explanation is in the annotated chart below.
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