Here it comes.
I missed your chart set up! You may be right but if it happens im guessing not today.
I could be wrong though...its just a trade.
Taking the other side for a short trade. Long at ES 1324.75 ...looking for 10 pts. This
trade has a stop of 1318.25. Real oversold ST and a tad bit oversold IT now in a bull market.
Looking for a little MR.
You may get your 10 points in 5 minutes after the open. Volatility is about to increase. One thing that was bothering me is how low VIX was during this grind down, No concerns, no fear. I think either today or tomorrow is a big down day, that may not bounce.
The way I see it... while the market was holding trendline, and the structure was relatively bullish, and we were above 50 day moving average, things looked like they may bounce any day now. Now this "pullback in the uptrend" is turning into a real bloodbath which is likely to get much worse as technicals break down. Shorts won't be as eager/scared into covering and bulls that were holding out hope will start capitulating. So the trend pressure is about to increase. Oversold is likely to get even more oversold.
Btw, we're not even that oversold yet. Internals were holding up OK untill today, today all positive divergences should go bust too. And RSI has plenty of room to drop even on 60 min, and i'm not even talking on daily. Daily is just starting to get going.
Edited by ogm, 12 July 2012 - 06:07 AM.