10-21-10 es
Posted 10-21-2010 at 12:42 PM by Tradewinds
The ES often has an extreme price between 9:50 and 10:10. Today, price bounced off the opening level at 10:02 am. So this is the second day in a row, that the open was a resistance level. News came out at 10am. The news at 10 was a little tricky. Everything was worse than forecast, but the price went up. Even though things were worse than forecast, they were better than previous. Accum volume was up, and UVOL - DVOL was up. But price broke down at 11am, and dropped all the way to the half gap. The big drop bottomed EXACTLY
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where ACCUMULATED Volume began to turn, which was also right at the half gap. Then price went up to the open, which is also the half gap from midnight on. The price was going nowhere before the 10am news. There was not a lot of speculation on price going higher. So at 8:30, the thing to do was "Sell the News" because the price had already been driven up before the news, and price was gapped up. Plus there was more news coming out later. If there is more news coming out later, then it seems like price goes into a second phase of speculation, consolidation or retracement before the release. The consolidation before the 10am news was a price level about half way between a price high at 7:35 and a low at 9:34am.Posted 10-21-2010 at 12:55 PM by Tradewinds
- Accumulated volume peaked at 12:30 and went down for the rest of the day. UVOL - DVOL went negative at 11:40 and stayed negative. ADVN - DECN went negative and stayed negative, and the price of the ES ended below the open for the day. So it was not one of those days where things stayed positive or negative all day.Posted 10-21-2010 at 08:24 PM by Tradewinds
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