Late this morning I sent out a trade recommendation to buy the EMini SP futures. Today was the Buy Day in the Taylor Trading Technique (TTT) cycle and a morning selloff gave us an opportunity to trade this setup.
For the EMini SP, the Wednesday low of 2980.50 was the reference price. It spent much of the morning higher, then sold off as crude oil sold off to new lows. This move below the reference price was our heads up to look for the market to put in a bottom and turn back up.
That move lower is what got me to anticipate a buy for the ES. After it turned back up, the market had another bullish point in that the day session low was higher than the overnight low.
The ES regained the Wednesday low around 11:05 AM. I was away from the desk so I wasn’t able to buy it when the signal was first triggered however it hung around for a while and I was able to buy it a few minutes later.
Our initial stop loss went below the day session low of 2985.75. It started working higher again, taking out the 2990.00 overnight high and accelerated afterward. Around 2 PM it made the session high of 3001.50.
I was looking at this as a pivot point objective for the rally – 3000 is round number resistance and 2999.50 was a significant Fibonacci retracement level (see the daily chart). I chose to take profits around here for a profit of approximately 18 points; tightening up stops to play for a larger move was an alternative exit strategy.
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