ES Wednesday 3-7-12

some videos, BLAST and my basic plan..good luck today

peak volume from the On is at 47.50 which goes real well with the VOLUME VA high from yesterday...my plan on any push higher above that is to use 47.50 as an initial target...hopefully we will get a good push up .. expecting price to revert back to value on any pushes away from it

the lower volume is supporting mean reversion but it's best to trade lighter until that double high at 46.75 is cleaned up..better shorts will be above there

Bruce I dont see 46.75 double what time frame

5 minute///todays trade..just ran it out

s 47.25 but am prepared to add core higher...report coming at 10

double low at 44.25 is target but will revise if adding above..plan is still to use the 47.50 as target but obviosuly need to go up above 49 in order to use that as a target..perhaps plus 4 will hit for us

$ticks had only one minus 400 reading so sellers are really not here yet

FWIW
On just a chart pattern basis;

days after big gains or losses are often consolidation days
short-term range bound scalps

Big loss like yesterday can be oversold so much (short-term) that bears actually keep price aloft during the next trading session (today) due to closing out positions (buying to cover)

BUT, when there is a big drop in prices like yesterday, the market usually needs assurance that price is now firmly in the grips of the strong hands (strong and long, meaning will hold long positions even if price moves below LOD yesterday)

So, I am not really convinced that lows for this selling have been put in until there is some sort of a test of yesterday's low that generates buying interest. and being human, I have been wrong before.

a quick boring update. I'm dead today...like the market.Better sells will come above yesterdays highs and the On highs but so far I have not been able to put any size on today..still working my 47.25's and that is not a great way to put in a top but this low volatility changes things!

watching $ tick 800 and 600 extremes today..that's what is being used for buys and sells

I have started to watch the “open interest” which is something new for me. In the last 3 weeks it was going up 8-12k contacts per day.

Two days ago it went down 21k yesterday it went down another 23k contracts

What does it mean? As far as I know if the market will drop it will continue…

Anyone use , or has a different interpretation for this information please answer here

staring to look for better shorts at 49 now....risk is that we coiled and MAY be breaking out..47.50 is the air pocket...sticking with the plan

Great input today folks. It is really appreciated.