Match. Set. Point! The 110.07 level I offered in the pre-market report turned out to be the high of the day, and price sold off heavily into my 108.88 target before finding the day’s low at 108.40. Again, it really goes to prove that the professional price levels that floor traders and other pro traders use are oftentimes the only levels you need on your charts.
Monday’s market was rather dull for most of the session. The market opened bullish and pushed quietly higher throughout most of the morning. However, a late-day sell program kept things interesting in the E-Minis, as prices sold off heavily from key overhead resistance levels.
Friday’s market saw overnight strength, followed by a “buy the dip” opportunity that led to a slow rally the rest of the session, which has been the pattern du jour of the summer so far. I participated in the move by buying the E-Mini S&P 400 futures contract (EMDU3) at the 1208 program level that I had identified over the last few days, which eventually led to strength back toward the session’s high.
The E-Mini S&P 500 endured a bit of a roller coaster day, as the release of the FOMC Meeting minutes led to some great volatility and big price swings. The ES initially sold off after the release, but buy programs kicked in 2 ticks above an unfilled gap at 1635.75, which sparked a rally of 18.50 points over the next 40 minutes.
The E-Mini S&P 500 has definitely gone lower since its inability to climb above the 1700 to 1702.50 zone, reaching price levels as low as 1641 during the decline. There’s likely more downside ahead, but we must figure out if the market is going to see a short term bounce ahead of the next major wave of weakness.
