Short-covering late in the session helped lift stocks off their intraday lows after Trump promised to produce a transcript of his conversation with Ukraine’s leader. However, the bounce should have been feistier, given that the futures had stopped out a visually important low at 2958.75 recorded two weeks earlier. A relapse therefore seems likely, and a close beneath the low would probably suffice to send this vehicle down to early September’s lows near 2900 in search of support. Most immediately, if it hasn’t traded above 2979.75 by 10:00 a.m., look for a slump down to 2954.25, the first place whence a bounce would be logical (60-min, A= 2009.25 on 9/24 at 10:00 a.m.). You can bottom-fish there with a stop-loss as tight as 2952.75. ______ UPDATE (Sep 25, 9:11 p.m.): The trade caught the low of a 40-point rally within two ticks (!) and was an easy winner. The trampoline bounce generated a $600 gain in just ten minutes and by day’s end as much as $1900 of profit per contract. However, only one subscriber reported having done the trade, and so I did not establish a tracking position. The rally looked strong on the lesser charts, but it’ll need to hit 3010 to show evidence that new record highs are coming.
ESZ19 – December E-Mini S&P (Last:2982.25)