Yes, I believe tomorrow will be a down day, otherwise hard to predict. It's quite evident this market is not making natural moves.
S&P has tried a few times to break through resistance these past five days even though it has spiked above it. Big Money seems to be shorting any rallies or the bulls are just running out of steam. Without a catalyst on the horizon we are not going any further north. Do not see it as a market top but more of a pause and wait and see stop. Phil
Yes, they are looking tired to move higher without taking a break. I think both ES and ER2 are trading around its 61% fib retracement levels. They never closed above it. If one day both indexes close above it (for ER2 that's 663.6) , this is a sign of major breakout. This is the ER2 fib chart: http://tinypic.com/view/?pic=fjpwmu
Hi Trade4aLiving, It would be cool to see your profits included here in your journal. Are you up for that? Thanks, Mike
thanks for the journal. I've been trading the YM lately but today my attention returned to the ER2 That seems to be where some big wins and losses can be made. I'll be watching for your post tomorrow. Are you holding overnight? short? tt
Yep, I think ER2 has the biggest violatility and velocity on these active indexes. Violatility leads to move early and faster. Some of my friends are successfully using ER2 as a leading indicator for trading ES, ER2 always moves ahead of ES. Take a few days and watch it, you shall see. I used to trade ES, but ES has been actiing very slow recently. My last trade today was on YM, shorted at 10574 and covered at 10564. I don't hold anything overnight, always close them before 4:10 PM.
Here is another look at the ER2 fib retracement. I used a solid candle (or finish) and 622 (the closing price) as the starting point. It clearly showed 665.9 is the 61.8% retracement, which is today's high