Update Cash Close:
Closed within ticks of the middle of the range which happens to be 902.5. Another day to drive both bulls and bears crazy with this tape, luckily there were some set ups that worked out reasonably well as well as some decent scalping opportunities.
One promising thing is that 200dma and 50ema are now within the range and will help this market make a decision shall we stall in this range for too much longer.
If you are not doing so yet, feel free to FOLLOW ESEC FUTURES ANALYSIS ON TWITTER, even if you don’t go on twitter, still follow me, it will make me feel warm and fuzzy inside :-P
Have a great rest of the day and check back for daily updates later on
Cheers
Vlad
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Update 3pm EST:
On the updside no resistance until 914 weekly R1 and high of yesterday, on the downside watching daily ambush zone which happens to line up with a trendline (if 908.75 level holds) 50% line is at 897.5
last hour of amazingly exciting day is here… we are OBVIOUSLY… in two parallel channels
… just kidding on that one, even though price does seem to react pretty well to the levels on those parallel channels on 2500tick chart
Update 2:06pm EST:
No new developments in the markets, all continue to trade via random generator method.
One thing worth noting is that 200dma on ES is now below the rally high.
Update 1:16 pm EST:
Ambush zone from yesterday’s highs violated. No clear set ups at the moment. Waiting for more price action to develop. Yesterdays high and weekly R1 at 914 with trendline right below there in 909s:
This whipsaw besides making me almost throw up my lunch gives plenty of room for imagination of head and shoulders patterns, with current inverse one possibly breaking out with target around 918.
Update 12:28 pm EST:
Shorting ambush zone from yesterdays highs has turned into quiet a fun exercise. Awaiting more price action instructions from Mr Market now and trailing the short.Keeping an eye on reaction at 894 as ambush from daily lows on the way down. Remember that we are in a box of vicious chop, so it pays to consider bigger set ups only, getting cute with smaller set ups can be really painful in current market conditions.
Gold has made a new multi-month high and euro has also been rallying on dollar weakness.
Update 10:57am EST:
Ambush held perfectly bouncing for over 14 es points. Now (considering 886.25 low holds) that same ambush is at 900, with daily 50% retracement / ambush zone at 894.25 to watch for further direction clues.
Good Morning Traders,
no key technical developments overnight, watching ES 900.5 ambush zone for further direction, remember that we are in the box of chop so ambushes are a little less significant. Check back for more updates as price action develops
Good Trading to all
Vlad