The futures flashed a ‘mechanical’ signal to get short on Friday that I characterized in the trading room as too dangerous to use. It is mainly a case of the C-D leg not falling quite to our sweet spot before rallying back up to the green line where we do this trade. But neither was the signal so unenticing that we should reflexively go against it by getting long for a pop above the point C high at 2944.25. Since news has been driving short-term swings, we’ll steer clear of this vehicle until such time as it gives a textbook-perfect buy or sell.
ESU19 – Sep E-Mini S&P (Last:2891.50)