here is example of same tape-reading:
note how ES futures are not 'strongly rejecting'
VWAP. this indicates to me that we are likely in sideways chop chop mode. Given very bad 'internals' (breadth -2100 and VIX +10%) it seems that we SHOULD come out of this sideways chop to the downside this afternoon.
The signal for me is to wait until 40k contracts trade at a single price. Until then, the 'tape read' is that we should fade the edge of the range. Right now, the most likely price to hit 40k is 1508.00 because its at 29 now. Thus, think this market is a short near ~3+ pts above that (1511+ area) and a buy ~3+ pts below that (1504.50 area). Once we get close to 40k contracts, no more fading, time to look for a breakout. It often needs 45 or 50k so 40k is my absolute minimum.
This would be different situation if we were strongly rejecting
VWAP.
