ES - How Much Lower?
After today's move down we could see a pullback. It was a bit of a stretch to try and draw a clear channel around this recent downtrend, but I approximated it the best I could. We're currently sitting at the bottom edge of that channel. If the channel is holding then we could see a pullback which would offer new opportunities for short entries. These medium term channels don't last forever though.
Watch the overnight trading tonight. We had a late spike down this afternoon into the close. If the overnight trading stays below the base of the spike, or extends the range lower causing a gap open down, this indicates acceptance of lower pricing and continuation should be expected.
I've moved the stop loss on my short position to the base of the late spike to protect some profit. The base is where range extension has begun. If overnight trading moves above this level and causes the market to open above the spike, patience should be exercised as better trade location will likely present as the day develops.
Watch the overnight trading tonight. We had a late spike down this afternoon into the close. If the overnight trading stays below the base of the spike, or extends the range lower causing a gap open down, this indicates acceptance of lower pricing and continuation should be expected.
I've moved the stop loss on my short position to the base of the late spike to protect some profit. The base is where range extension has begun. If overnight trading moves above this level and causes the market to open above the spike, patience should be exercised as better trade location will likely present as the day develops.
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