Trader's Daily Notebook: Short Term Trader? It Makes Sense to Be Selling Rallies

Thanks in part to a relatively uneventful speech from Fed Chair Janet Yellen, Friday's E-Mini S&P 500 futures (Es) auction was pretty quiet. For the day, roughly 985,000 contracts changed hands over a 12.50-handle range. And despite the auction's bullish gap and initial surge toward Tuesday's intraday high, price failed to gain acceptance above 2448.50, and traders quickly auctioned the contract back down toward our 2441.50 day timeframe pivot. A silver lining for bulls is the fact that the day timeframe pivot supported price throughout the session.

S&P 500 Futures -- Daily Volume Profile
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Given how range-bound the regular session's Es trading was between Wednesday and Friday, my hunch is traders are growing increasingly impatient. Bears are focused on the fact that price only closed above the 50-day moving average (MA) once last week, and now appears incapable of recapturing a simple 10-day MA. Bulls, on the other hand, continue to suggest all is well as long as we're trading above 2400....401 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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