Yesterday I wrote about a breakout rally in the eMini S&P Futures (you can read that HERE). The Taylor Trading Technique tells us to anticipate a Sell Short day in the following session, will we get a selloff this afternoon?
This whole setup came kind of late in the day after a lethargic morning. The EMinis worked higher over the morning, making a series of higher highs and higher lows. The rally stopped around 12:30 PM when the market traded up to but was unable to trade above the Thursday high, which is the reference price for a Sell Short day.
The failure to clear the Thursday high brought on a selloff, and around 1 PM it was down to start testing the Tuesday and Wednesday highs, which were the breakout levels from Thursday’s rally. Those highs were resistance so they should now be support.
For the balance of the afternoon I’d keep an eye out for a potential short sale – short if it broke below the afternoon low of 2359.50 or the overnight low of 2356.75. It’s late on a Friday afternoon so liquidity is low, so I don’t know if it will come about but if you are looking for one last trade for the week this might be worth looking for.
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