Derivative markets are non-linear so a lower Daily close yesterday there is the expectation of a rotation back up, especially when markets are supported around their 5-day lows, as was the case yesterday, and in the SPI today.
The last few Weeks, most up moves have occurred on Tuesday, so any rotation upwards would be towards the 5-day 50% levels.
However I think the best trade would actually occur from the lower blue channels early in the day before a late UP move.
Risk levels are the previous blue channels @ 13082 on DOW and 1446 on ES, with the expectation that the market will move back down into channel lows.
Above those risk levels and rotation is towards the 5-day 50% levels.
Today’s isn’t a major set-up on open, it’s a wait and see how things play out using levels in the market to manage risk and hopefully trade the move from one level into the next.
Don’t trade against yesterday’s channel lows and today’s channel lows.
The last few Weeks, most up moves have occurred on Tuesday, so any rotation upwards would be towards the 5-day 50% levels.
However I think the best trade would actually occur from the lower blue channels early in the day before a late UP move.
Risk levels are the previous blue channels @ 13082 on DOW and 1446 on ES, with the expectation that the market will move back down into channel lows.
Above those risk levels and rotation is towards the 5-day 50% levels.
Today’s isn’t a major set-up on open, it’s a wait and see how things play out using levels in the market to manage risk and hopefully trade the move from one level into the next.
Don’t trade against yesterday’s channel lows and today’s channel lows.
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