ES Friday 8-22-14

Looking to buy in two areas this morning and that is 86 ...hitting now and down at a zone of 82.50 - 83.75....then we can target the ledge at 87.50 first and gap close.....starting now at 86 ..will post chart...if we take the lower zone then we'd really have to start getting out at 85.75.....this market is dangerous due to low volatility and volume.....we are overdue for a sell off and to clean up the charts and thought the high to low day would have been didn't happen...perhaps today the high will be put in are key areas from the last 2 days grind higher
here is chart with just the key zones of volume without anything else thrown on there
Click image for original size
I had 83.5 to 84 marked as a buy area because of the 21st low and VAH from the 20th. Looks like you expect them to blow through that area?
started new RTH buys at 84.50...going in small and plan to trade bigger at lower zone down near 82 - 83 area mentioned
the problem with a long down here is that all targets have already been hit on the open move so perhaps not many are inspired to take another long ...good reason to come out heavy in the 86 area...
low volume ( air pocket that developed today ) still sits at ledge low of 87.50 if we r lucky but I am not convinced that we caught a good low here yet
they are still trying to figure out the 86 LVn on my chart
that's me done at gap more trading today....I only had one left for gap fill.......but that's ok.....I think the lesson on many of these "areas" we define is that they can temporarily push past to shake out players.... then the same area can turn into the support ( in this example) we expected to have happen in the first just because we go past it doesn't mean they are done using the level
Done as well: I bought yesterday's 1986.75 (LVN just below VA) and exit at 1991.00 (VAH)

Still an inside day, but that might change soon.

Good weekend everyone.