Trader's Daily Notebook: Keeping a Short Leash

Tuesday was a fine day for day timeframe scalpers, with roughly 1 million E-Mini S&P futures (Es) contracts changing hands over a 17-handle range, but those operating over a higher timeframe were left on the sidelines. At some point, the current horizontal chop will come to an end, and a more aggressive and motivated participant steps forward. Until that time, however, we'll continue to trade within a very short timeframe and avoid adopting too aggressive a directional bias.

Daily S&P 500 Futures
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As far as the Es is concerned, we'll continue to use the 20-day or 21-day moving average (MA) along with the multiweek downtrend line as our upside trigger. A combination of the 50-day MA and the big figure (2400) will act as our downside line in the sand. Those anxious to adopt a bearish trading posture would be wise to tread lightly as long as we're trading above 2400....571 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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