After yesterday’s selloff, today the eMini S&P futures were on the Buy day of the Taylor Trading cycle. Given that stocks often have a positive bias the day before a holiday (not a sure thing, but a tendency), I liked the long side today.
Stocks traded lower last night geopolitical concerns lingered. In fact, the eMini S&Ps tested the weekly low of 2333.25, forming a double bottom at the overnight low of 2332.25. It recovered off this low, and opened the day session at 2336.25.
The stock market open was the catalyst for a rally, and the market moved above the Wednesday low (TTT reference price) around 8:35 AM, triggering our long entry. The initial stop loss could go below either the day session low of 2334.00 or the session low of 2332.25.
The market lingered around our entry zone for about 15 minutes and then took off. By 9 AM it had nearly reached the first objective at 2345 (I mentioned that in the STI Morning Watch List) and then again around 10 AM. The morning pattern of higher lows and higher highs looks supportive to a further rally if it pushes above 2345. Clearing 2345 could target 2350, which has been a magnet price over the past week.
Essential Guide for Futures Swing Trading
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