(click images to enlarge)
ES has tagged the first VST downside target at 1325.50 mentioned in my last post, and I have refined that support level a bit further (shown as green support zone between 1320-1322) to show a possible back-kiss of the extended ST trendline resistance trend line broken on 7/1.
ES 1326.50 is the early line in play. The gap down this morning serves to trap cash market bulls (who entered at unfavorable gain to risk ratios) under last week’s low. Stop-running is a characteristic of trading ranges and Stops and Targets is showing ES to be back in a trading range between 1338.50 and 1264
IT bulls who bought the June 29th Stops and Targets signal at 1297 and took partial profits at 1354.25 are sitting pretty here with a risk-free trade on the remainder of the position and just waiting out the pullback.
ST traders who took the counter-trend sell signal at 1338.50 are looking for a move back into the ST buy zone around 1308.50
It is all about waiting for the proper gain to risk ratio setups, and as I type ES is outside of the ideal entry zones on all three time-frames.