Based on Algo time cycles and Fib retracement we are at an interesting place. The bias appears to be on the downside but if we stay above the pivot (purple line) we could waffle around until August 27. I wouldn't get too excited about going short unless we see a breakdown in the market in the overnight (ES) leading into the opening on 8/16. I think babysitting is the call of the day for daytraders. For swing trading I have put options in my inventory to protect long positions and to take advantage of the August vacation period for institutional traders. We shall see how this goes. I think this is a good time to watch for that moment to short for the next couple weeks. Trade safely, do your own homework!
Comment:
So the overnight leading into 8/16 was bullish on ES but SPX failed to break out of it's current trading range in either direction. Keep your motor running but don't keep the transmission in the neutral position until we get confirmation of a technical break above 2472 or a breakdown under 2460.7. A technical break above 2472 in the next few days can take us back up to test the highs and there is no reason to remain short with that kind of upside risk. Stay nimble and alert, this has all the makings for getting interesting!
Comment:
Market action at the close on 8/17 has us sitting on top of the trap door. The after-hours trading has us below the key 2429.3 level but ES trading can be tricky. Stay short with tight stops, but this market won't look rosy unless we push back through 2442.4 in a meaningful way.
Comment:
Will post new chart if we take out 2412.7