For tomorrow, my bias is bearish.
Taylor trading technique shows that the 2-period closing ROC is high and due to flip down, particularly for Nasdaq. Moreover, we built lower value today (other than Nasdaq) -- showing no residual upside momentum from Fridays big up day -- somewhat surprising. Friday is looking like an 'excess high' was made and we may have begun a good downward auction here?
ES & RUS both have 3 bar 'cap' formations (an Art Collins 3-bar daily pattern with highest high and highest close occuring in the middle day).
All that said, we traded down and formed a fat profile low in the 2-day range -- indicating lack of seller conviction. Volume was extremely light. Nevertheless, I was a bit surprised that bulls never really showed up when they really could have taken control from the bears today. The lack of buying pressure today combined with a gap down off an excess high is all a big red flag in my book. I did not go home short though because of the
PVP/high-volume area just below us in the 1558.00 area.
Ant, what you thinking for tomorrow?