Trader's Daily Notebook: Bulls Have Reason to Worry About Small-Caps

Friday's better-than-expected employment report triggered a bullish gap in the E-Mini S&P 500 futures, but initiative (breakout) buyers were AWOL, and responsive sellers dominated the session's early trading.

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Our baseline expectation entering Friday's auction was that all trading above 2368 to 2369 would encourage more aggressive buying toward 2377.75 and 2384. So when the contract opened at 2373.50 and immediately sold off, it made sense for day timeframe buyers to re-enter the market in the upper-2360s. Unfortunately, the initial bounce from 2368 failed to trigger sufficient buying to recapture the opening print. And by 10:45 a.m. the contract was on its way toward a test of 2359.25 (our other pivotal level highlighted in Friday's Trader's Daily Notebook)....635 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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