Friday 20th September – ES_F Review

Morning Traders,

Yesterday we saw really strong trade off the open, but following the repair of the poor high from last week at 3023, we sold off for the rest of the day – it really felt coming in that we’d have a trend day up and that was our bias when taking trades. We had hoped to grabs some good longs during F & G period which weren’t successful, as the internals began to fade mid-afternoon.

Overnight, our inventory is long, almost 100% so we’ll look for a degree of correction off the open as the order flow works it’s way out. It looks as though we’ll open in yesterday’s range, and inside yesterday’s value area which indicates balance, or acceptance between buyers & sellers.

Today, our analysis is skewed by the quadruple witching occuring in markets today – this is where we have stock index futures, stock index options, stock options, and single stock futures expiring simultaneously, so it’s likely we’ll see some strange price action during today’s session.

Something that’s worth noting is that we had very mechanical selling in I & J periods yesterday and coincidentally, our overnight high has tagged the high of I & J periods to the tick.

Once OpEx is complete, we’ll have an idea of how this market will set up for the day. We’ll tweet our commentary as we go.

Good luck, and happy trading.