The markets have not gone anywhere in last few trading sessions. Today was a new push lower. It seems with the previous trading days either the Bulls or Bears are getting flushed out, one day is a close down, the next day a close up. The higher timeframe traders, like hedge funds and institution seem to be taking position for a much bigger move to come. The markets look like they are setting up for a few trending days, one side will soon have to blink then it's all over when the other traders pile in.
I have not been trading since I lost the feel for the markets and have stepped back to take a fresh look at things. What I see forming for the Bulls (On the S&P) is a wedge that if respect will give some good upside. With all the bad news coming out lately, if the Bulls can hold the support line drawn in the trading channel, they might have their day to reverse the markets for a little while.
ES Daily
There could be some easy trading to the downside, shorting ES all the way down to 757 area could provide quick profits. However there could always be a 2nd retest of the mid-line before a bigger move lower. The past few trading days I am sure are chewing up swing traders left and right. I actually felt a bit bullish the night before, but realized we are in a Bear market and a trader will be hard pressed to see consecutive follow through days to the upside!
NQ Daily
Happy Hunting Traders.
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