Timing

The fireworks started early this 4th of July.

Yesterday’s reversal continued today into a punishing rout for any longs who remained steadfast in their belief that this was a pullback worth adding to their beleaguered position.

The premarket magnet was 913.5, and it was logical to test this support.

What nobody knew when this mess started this morning was how far the market would have to implode to find support.

Like the energizer bunny, still going. “Any day low” day was called. That means a trend day is expected, and no one knows where it will find support.

@Futures71 said that know one knows where the market is going. He is half right; we don’t know for sure, but do have an idea of successive targets when one is hit and broken.

The charts were posted, showing the projected lower targets.

The targets suggested were 02 as potential support, then the expected 98 to 03 chop zone where “the Bulls must make a stand”.

After the hit to T1 at 97.25, the market went sideways though lunch and well into the afternoon.

Lower potential targets of 92 and 89.75 were called.

Trend traders cleaned up if they were patient and played late day. Many will want to start the holiday early, or even if they do hang around won’t play.

Who wants to ruin a nice 4th of July party?

That’s why the timing of this move is so egregious.

The late day plunge is destined when the hapless longs cannot take out the 03; after the 02 broke it became resistance.

The RTH low was 892.75, and last I looked Globex had hit 89.25

Rocket science?

Nonsense, just a robust system that takes the emotions out of trading (Ha!) and some common sense.

Hamzei’s call of 30 right shoulder yesterday was on the money.

Twitter

big picture longs never could get head above 02 when it broke http://bit.ly/2FGZS

destiny http://bit.ly/ux8UJ

Thanks to one of my scouts for this report. Book is in my library and a good read… http://bit.ly/8iCFY

” this 98 to 03 is primary defense area for bulls are they in trouble” so this range is being battled

RT @FuturesTrader71: Good morning. I see it free to around 895 to 891 today in $ES_F. Minor support at 898.00.weekly

breakdown mode, all longs are guessing right now 02 is theoretical support only

08 is stop i think

Those basic posts were important, along with the others I made today. Especially telling has been the plummeting vix, which was badly in need of bouncing.

“When a weekly low is violated, it becomes resistance.”

Averaging into a position near major support or resistance is savvy; when it’s not it’s painful and destructive to our accounts.

Keep your losses under control, and accept as graciously as we can that they are part of playing the game.

Emini Implosion