ESM17 – June E-Mini S&P (Last:2343.00)

On Wednesday the E-Mini S&Ps tripped a promising ‘mechanical’ short when they plunged through the green line at 2359.75 (see inset).  This evening, odds of the futures achieving a 2314.00 target 46 points below the trigger point shortened on news that the U.S. had attacked Syria with cruise missiles. I’d flagged a ‘mechanical’ short from 2359.75 Wednesday night. However, because only one subscriber reported having done the trade, I did not establish a tracking position.  Even so, if you are short from near Thursday’s high, I’d recommend taking profits on half the position at p=2344.00. (The futures are currently trading four points lower.) Since the target is sufficiently clear and compelling to use for tightly stopped bottom-fishing, I’d further suggest covering any remaining shorts if and when it is reached. An additional reason for doing so is that, these days, traders are so full of bravado that all-out war in the Middle East is probably good for no more than a few hours of hard selling.