Today’s trading action may look very familiar to you that’s because if you read my article on “How to protect yourself from range bound markets” then you understand my theory about the market still building value in a range. Today’s day session high and low is 2091.75 to 2084.25 that’s a 7.50 range with most of today’s action trade between 2089.00 & 2087.00.
This lets me know we’re waiting for the consumer sentiment consensus and the fed chair Janet Yellen to speak tomorrow, or the market has already began celebrating Memorial Day weekend.
Volume today in the emini has yet to reach one million in total, which includes the globex session volume. In my opinion that shows a complete lack of participants. Now that I gave you all the bad news, the good news is, if the market isn’t moving and has no volume then don’t trade it. Professional race car drivers know when to be aggressive and when to ease off the gas. The same applies for professional traders. You have to know when probability is on your side. Lack of volatility and volume usually means lack of opportunity in the ES.
Here are some market levels I’ll be watching overnight trading and day session.
To the upside I’m watching 2091.00, 2092.00 and 2093.00 if we break above 2093.00 look for 2099.00 to be a potential resistance level also.To the downside I’ll be paying close attention to 2086.00 to 2087.00 to 2084.00 to 2082.00 I know these ranges are very small but this is a direct result of the tight range bound markets we’ve experienced the past few trading days. If we break below 2080.75 then 2075.50 could be our next support level.
Keep in mind this is Friday before Memorial Day weekend. It wouldn’t surprise me if we see this market grind higher in the overnight trading session and continue to be very stale for the throughout the day session tomorrow.
This just means everyone has their grills going and swimsuits on already enjoying the holiday.