E-Mini S&P 500 Futures
We observed Long Liquidation today, and as those days go, it was just selling followed by more selling. As posted last night, once we broke 1187, I was only looking for Shorts. A simple, but important, point to keep in mind is that Broken Support = New Resistance. Once price breaks through a Support Area, I'm usually looking to take Shorts against the broken support. That simple technique provided several nice entries today. Another important point is that on days like today, we have to be aggressive on the Short entries instead of waiting for the obvious and easy Shorts (50% retracement, retracement to VWAP, etc) because price simply won't retrace that much on strong trend days. Market Internals were negative and trending down all day. Volume in declining issues ($DVOL) was outpacing volume in advancing issues ($UVOL) by over 10:1. At this point, I'll be Shorting bounces until the market shows me that Buyers are back in control. This doesn't mean I won't take trades on the Long side, but I will definitely be more aggressive on the Short side.
Across the Board Selling in All Sectors Except Pharmaceutical
ES 5-Minute Chart
ES Day Session Volume Profile Chart
