So today looks big and scary. But actually, we are in 'balance'. This kind of day reminds me of the big down days last August. big down move, sideways chop for a few hours until 40k+ contracts build up at a single price... then trend away in the afternoon from
VWAP. note that:
Price=VWAP=PVP <--- this signals 'balance. From balance comes a directional move.
I am look for a trending move away from 1532.50 of ~10 pts, perhaps more
so, break up could lead to 1542.50+
break lower could lead to 1522.50
note we could break one way, do a trap and then rocket the other way. This would be most evident if we make a 'higher low' after breaking lower.
a break in one direction should not return to 'accept' the
VWAP price -- it should break and trend away so this should be a clue that a trap may have just occured.