Mixed Short-Term Thoughts on ES
Updated
On the one hand, we have a nice rising wedge tonight, which broke down and is backtesting now. That makes me think we'll work lower tonight and gap down.
On the other hand, we're oversold now and due for a bounce.
Psychologically, I expect the market makers to trap longs with a gap down, but they're letting longs of easy right now. Hmmm. I do expect that we'll continue to go down for at least another week, but I'm agnostic about the next day or two. Tonight will be interesting!
On the other hand, we're oversold now and due for a bounce.
Psychologically, I expect the market makers to trap longs with a gap down, but they're letting longs of easy right now. Hmmm. I do expect that we'll continue to go down for at least another week, but I'm agnostic about the next day or two. Tonight will be interesting!
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The way I usually play these moments myself is this: I knew we were getting oversold today, so I took some profits today, but left some positions on the table. That way if we gap down tomorrow, I can take more profits, or if we go up, I will have taken risk off, and can begin accumulating again for the next drop.
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