Trader's Daily Notebook: Look to Be Long

Given how quiet and generally muted the selling has been in the E-Mini S&P 500 futures (Es) this week, it's understandable that many traders might have a difficult time accepting that shorter timeframe bearish excess began to trigger during Thursday's regular selling. 

30-Minute Intraday S&P 500 Futures Volume Profile
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The current decline in the Es contract began on March 2. But as you can see on the 30-minute, regular-session Es chart above, the only time anything resembling bearish excess has been triggered was during Thursday's auction (highlighted in yellow). There's no rule saying the contract can't trade through Thursday's 2351 intraday low (on the June contract), gain acceptance and ultimately auction down toward the year-to-date (YTD) volume weighted average price (VWAP). However, for short-term trading purposes, our initial thought heading into Friday's auction will be to look for reasons to be long as Thursday's area of rejection is tested. ...351 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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