This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.
Overnight price action continued to move lower inside the prior day’s range after the morning rally. Price action formed higher highs and higher lows showing clear evidence of a market cycle Phase 2.
From a birds-eye view, price action has been in a strong market cycle phase 2 with higher highs and higher lows over multiple days and presented several LONG setups (i.e. Flag patterns) over the last several days (no reason to SHORT these markets the last few days).
Pre-market Economic news starting to pick up with more impactful reports being released this week. Expect Wednesday to be report heavy.
Pre-market price action on the 5-minute charts found some minor support inside the prior day’s range and showing minor movements back and forth. We see that with the markets at all time highs, we will watch the 5-minute for any evidence of profit taking or a sell-off with multiple swing pivot lows being broken.
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Review all of our trades in the Quick Hits For Fast Profits Summary table…
ES 5 Minute Complete Strategy gave us a setup during the doldrums after price action closed above the prior day’s high. We waited for confirmation of a higher swing pivot low above the prior day’s high and to a marker lot LONG position.
We manage the trade and took 2+ points profit.