Since Monday's 10:15 candle close we have been trading in a fairly tight range between 940.50 and 948.
The ES range being from 939 to 947 roughly. As I write this we are trading at 938.00 even, so down a point. So we watch on the ES or the SPX if the 939/940.50 acts as resistance or we just slice through. That will be our early indicator.
The A/D line opened weaker on Tuesday compared to the Monday's' trend day, and it stayed weaker all day. This put my Zweig into neutral yesterday. We will watch how the A/D opens and how it performs in that first 1/2 hour, I would expect an attempt to fill the gap by heading up at the open.. a test usually occurs between 9:40 and 9:50, I find the strength of this first counter-trend test can reveal the strength of the original direction and begin to reveal the buying/selling sentiment.... but it is still amateur hour...
All odds have this as a down day, maybe a failure of that 940 or 947.50 will send us down the 3-5% correction that would be normal, even for this bull run (that should put us green in most everything we have), or maybe the start of a bigger correction.
One list graphic, for those of us trading SDS the same chart and numbers:
We all have different average prices, the TTTHedge portfolio has an average price around 53.30 so we are going to want to protect those profits. These numbers in the chart are hard to read but they are 53.62 on the high end and 52.62 on the low side. As I continue to write the pre-market is selling off even harder, the ES is down to 935 now and our SDS is trading at near 54 at 53.98.
Looking good for the open.. watch for a gap closing move or a trend down day... (hoping for the latter, preparing for the former).
Happy Trading
-RLT
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