Picking A Direction

UPDATE 1:55pm EDT: Back from breakfast and we find ourselves back the channel center line:

The bulls need to overcome this line in order to drive the tape up into the close. A failure here or a few ticks above will probably result into a late day slide. I for one would not mind an opportunity for a reload – but I’m sure evil.rat/NQ traders don’t share that sentiment 😉

UPDATE 2:15pm EDT: Bulls are now attempting to push above their S1 pivots in the index futures.

If they succeed I’m pretty sure that we’ll push towards their VWAPs and then approach that upper channel border by the EOD. If you guys are short watch those marks vigilantly.

UPDATE 2:43am EDT: Alright, VWAP has been reached on the ES – not far off on the NQ. Meanwhile, here’s a little goody for you rats:

2sweeties just introduced its hourly ES calculator which I think kicks ass. It could also be useful in finetuning entries when trading according to our Zero signals. Anyway, he’s offering a free week, so you guys can talk about those RLs all day and all you want. Clicking on the calculator gets you directly to his site where you can test drive his new baby to your heart’s content. Remember that this thing renews at the middle of the hour – as the ES trades that way. So, you can hit the ‘update’ button on the ‘frequency’ tab again at 3:30pm EDT and then again at 4:30pm EDT, etc..

I picked 912 as the 100% mark as there’s a lot of resistance lurking. I think we could easily run to 906.

UPDATE 2:53pm EDT: So, we ran all the way up to the upper boundary of the Spiders channel:

This also happens to be today’s VWAP – if we push above that it’ll get really interesting in the last hour.

The problem here is that we can easily count this move down as a clean a-b-c which could be followed by a LONG motive to the upside as part of either Soilent Orange – or the WTF scenario, Soilent Green.

UPDATE 3:00pm EDT: We are at VWAP on the NQ as well now:

This thing might pick up some steam now – after the obligatory retest of course – we are short term quite overbought (didn’t stop them yesterday however).

BTW, a little birdy told me that the prop desks are kicking in some BUYS as well. Be careful.

UPDATE 3:38pm EDT: I hate to keep raining on your bearish parade but we just painted almost a perfect motive at Minuette degree:

I think we could now get a nice a-b-c at Minuette degree, completing at the VWAP and then push higher – either into the close or tomorrow morning. Yes, I could be wrong but I’m just telling you what I see.