Update Cash Close:
Up 20 down 20, dollar breaks key support, euro closes above key level. Check back later for daily updates. Will try to make sense of this nutty tape.
Have a good rest of the day
Update 3:45 pm EST:
With 15 minutes to go ES finally tags 3 day 50% retracement. This should be key ambush area in deciding further direction.
Update 2:10pm EST:
Markets still digesting FOMC, gold and euro look ready to rip out. Still watching 915.25 ambush on ES on the upside and 899.5 on the downside.
Update 1:38pm EST:
Just got new high $TICK of the day, watching 915.25 ambush for further direction
FOMC MINUTES AT 2:00PM EST! It would probably be wise to stay out at this point in time
Update 12:40pm EST:
ES continues to make new lows, will be watching for a bounce to look for short entry at ambush from 923.5 high.
Update 12:18pm EST:
on the downside there is no clear ES support level until big 899.5 ambush.
On the euro will be watching close above/below 1.3736 level closely
So far considering the recent tape, first best set up is setting up a chair on your backyard and grabbing a Corona and letting a market pick a direction, Second best being taking a stab at ambush short form the highs on ES, currently 916.75 , doesn’t look like there are any clear trades setting up on the euro or gold at the moment either.
Update 12:09pm EST:
ES came within a tick of violating the ambush zone. Will be watching retracement from today’s highs (923.5), currently ambush zone begins at 917. Needless to say, this tape is nuts, unanswered 20 up and 14 down.
Update 11:49am EST:
ES ambush from overnight lows at 913
Gold Broke through previous channel expected resistance and is now within big ambush zone on the daily chart
Euro is above March high and came within 30 pips of big 61% retracement area
Good Morning Traders,
another shake out / bear trap overnight, with ES dropping on BAC news, only to rally 12 points from the lows into the positive territory.
ES found support in the 906.75-908 ambush zone on the overnight pullback, that will be key area to watch for further direction on the way down. Resistance wise there really aren’t any key levels, except yesterday’s highs of 915.75. This also looks like a potential bull flag.
Euro is back to the recent highs, with March highs and previous s/r level not too far away. Break above 1.3736 is likely to mean a quick squeeze to 1.3832 61% line which will be key line of defense for the bears, break above could turn into a massive short squeeze.
Gold is also rallying overnight, and it look like it is heading for a backtest of previous channel support
With big 50% retracement from yearly highs right right around there at 937.7, with trip to the top of the channel on the daily chart also very likely, especially if euro breaks out.
All of the markets, ES especially are in areas with significant resistance and support levels rather far away, so more chop is expected, as always will keep updated on key levels as price action develops.
Good luck and good trading