The weak bounce into Friday’s closed triggered an unappetizing ‘counterintuitive’ buy signal at 2942.25. We might have taken the trade if it had occurred earlier in the day, but given the stock market’s persistent weakness of late, it seemed like a poor time to act boldly. As a practical matter, moving the point ‘A’ low to the 2958.00 bottom of last Wednesday’s plunge would have generated a less risky entry signal at 2927.75, and a trade that would have been exited before the bell for a theoretical profit of $700 per contract. In any event, that rally may have depleted buyers for the time being, implying we’ll be better off starting the new week as spectators.
ESU19 – Sep E-Mini S&P (Last:2934.50)