A Technical Dissection of Monday's Trade in ES & Demo of 4 Points of Opportunity

[UrmaBlume 10]

While the bias and power of Sunday's Nite Session was manifest - the day's trade was less obvious and posed some serious challenges. Here is our technical dissection of the day's trade and a demonstration of the day's 4 key points of opportunity.

 

Most of the indications shown here are LEADING indicators and not information transposed by hindsight.

 

First is a shot of the HUD taken a few minutes before the open that reflects the much stronger than normal volume and very strong selling accross the board.

 

 

This next shot is of an 8k chart showing the intersection of time and price at the open and downward bias in price, an index of weighted biases and net new commercial trade - note the early signs of change beginning 10 - 15 minutes afte the open in the index of biases:

 

 

 

After 15 minutes of trade, 0645, there was very intense commercial buying as indicated by this chart and it turned the market for point of opportunity #1:

 

 

 

After less than an hour and 4 points higher the commercial seller revealed himself:

 

 

One of the better points of opportunity for the session came a little more than 30 minutes later with a very strong spike in commercial buying making a double bottom in the 977 area:

 

 

That spike started the 5-6 point 40 minute move shown here on the 1k chart;

 

 

With the exception of the 10 minutes of trade right after the open the UpLeg demonstrated above made the high of the session which attracted the strong commercial selling shown in this shot:

 

 

That strong, intense, commercial selling established a downward bias in both price and net new commercial trade that continued for the rest of the session, 4 hours, and made new session lows near the close as shown in the 8k chart below:

 

Edited August 18, 2009 by UrmaBlume