What a Globex we had! Wish I stayed up to trade it, I took one trade in at 21:30 Short at 3827 and covered at 12 when I saw we still had buyers at 3809.50 area, I did not stay for the pull back and re-entry at 3825.50-3820.25 but that was a beauty short just sold off smoothly level after level. Yday after the close I mentioned the way we closed and trapped people in RTH that most likely we will the lows again, I was hoping we will do that in RTH so I can actually catch the trade but market did what market did right, so what can expect today? Lets break it down, we now have buyers trapped over 3809.50-3805.25 Key level, buyers trapped over 3764.75-3760.50 Key level and right now we are holding under support of 3714.75-3709.75 Key Level but we have built up volume under it cheap to me shows acceptance, we still have over an hour before open but yday low is at 3723 which is by our 28.75-25.25 level which means most likely we will open on a Gap Down, our Globex inventory is very short right now so at the open we want to see if we get any correction to it towards the gap and the inability to fill the gap or get back over our Key Level of 3714.72-3709.75 will be our tell for the day. As I am writing this it seems like we are making another attempt to run the lower level of 3698.50-3695.50 so might even find ourselves even lower by the time open comes around, we have Unemployment at 8:30 to watch out for. Overall as mentioned yesterday I am expecting more downside this week, I wanted to see this level break from here I will be looking at next possible areas of support to be reached. Might be a rough day we already made a big move in Globex so RTH can be difficult to trade but we will wait and see.
- On the Downside holding below yday low and accepting under T+2 low and our Key Level of 3714.75-3709.75 can give us a push lower to 3698.50-3695.50, 3686.75-3683.75 and next Key Support of 3671.75-3665.75, with how much
supply we now have above I would expect it to be broken today and possibly test lower areas of 3655.25-3650.75, 3638.25-3634.25 where we can see some more buying and even possible for Next Key area of 3619.50-3613.25. We
have not been in this area in a long time so we have to watch how price behaves around the levels and if it breaks and accepts for continuation or not.
- On The Upside if we are to get any correction othen ideally we can hold this 3698.50-3695.50 level and try to push over 3714.75-3709.75 and try for the Gap fill around 3723.50 and from there we monitor for continuation
but I will be very cautious playing the upside today, most likely will be patient and wait for proper areas to go short. But if we do fill Gap and accept back in T+2 range then watch out,
*** Remember market is upside downside now, all the people buying yesterday are waking up not happy so it can be choppy until we deal with the order flow and can get going. Day to trade safe!