ES Passing By Historical Resistance 8/3/2020
Whelp, third time was the charm. That red line was a historical resistance for the ES.
Looks like I was right. The historical resistance at the ES would not hold for a third time. The market has a destination. That gap at 3330 from February is a good start. I would not be surprised if we get a new all-time high due to inflation and FOMOing.
People blame the Federal Reserve for how we got here. The Fed was out of the repo markets for over a month now. This price action was primarily due to FOMOers, a weakened dollar, and many, many short covering rallies.
If it weren't for the last two, the ES would've been around the 3000 area according to the on balance volume. This is why you don't short in light of high liquidity in the market. High liquidity strengthens support. High liquidity dampens the VIX. But no, new permabears want to be the first to short. That's like wanting to be the first to jump in front of the moving train.
If you missed that initial drop, remember there is plenty of meat on the bone. If you try to guess a trend change, you will be wrong 9/10 times. The trend is your friend until the very end. I see slightly up and bullish due to high liquidity and inflation. Experienced traders don't care which direction they make their money from. Experienced traders are always agnostic (neither bull or bear). Experienced traders recognize an easy trade vs a hard trade. Trading is already hard. Why make it harder by going against a trend?
Looks like I was right. The historical resistance at the ES would not hold for a third time. The market has a destination. That gap at 3330 from February is a good start. I would not be surprised if we get a new all-time high due to inflation and FOMOing.
People blame the Federal Reserve for how we got here. The Fed was out of the repo markets for over a month now. This price action was primarily due to FOMOers, a weakened dollar, and many, many short covering rallies.
If it weren't for the last two, the ES would've been around the 3000 area according to the on balance volume. This is why you don't short in light of high liquidity in the market. High liquidity strengthens support. High liquidity dampens the VIX. But no, new permabears want to be the first to short. That's like wanting to be the first to jump in front of the moving train.
If you missed that initial drop, remember there is plenty of meat on the bone. If you try to guess a trend change, you will be wrong 9/10 times. The trend is your friend until the very end. I see slightly up and bullish due to high liquidity and inflation. Experienced traders don't care which direction they make their money from. Experienced traders are always agnostic (neither bull or bear). Experienced traders recognize an easy trade vs a hard trade. Trading is already hard. Why make it harder by going against a trend?