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 moved above the prior day’s high initially and then pullback down in the upper 1/3rd of the prior day’s range and consolidated with overlapping bars.
From a birds-eye view, price action retraced 50% of the initial market cycle phase 2 and found minor support. With a second attempt, price action also found a higher low and now is slowly moving upwards with higher highs and higher lows, however has not crossed above the upper boundary of resistance from the previous market cycle phase 3.
The volume of Pre-market Economic news and reports will increase today and so we should always be cautious. With the immediate reversal of the market cycle price action, markets anticipating positive news of some kind.
Pre-market price action on the 5-minute charts also already showing signs of bullish momentum after crossing above the prior day’s high and sustaining heading into the opening bell.
We want to watch momentum as the r20MA converges upward with the r200MA, on the 5-minute charts, and we carefully will watch for more evidence from Market Cycle Analysis Guide, with candlestick analysis, chart formations and the ES 5 Minute Complete Strategy.
Price action initially opened above the prior day’s high, and with the prior consolidation from the market cycle phase 3, we waited for confirmation of price action on the 5-minute chart to close above the opening bell a second time, and we took and aggressive LONG entry and price action immediately moved in our favor and took 2+ points profit.
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Duration: 3+ minutes
With price action consolidating around the opening bell on the 1-minute chart, and we waited for confirmation on the 5-minute chart to close above the opening bell. Took aggressive LONG trade and watched as price action immediately moved in our favor and took 2+ points profit.
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