ES Wednesday 9-3-14

Wednesdays a generic 79% of gaps fill. Gaps over 5 points start having lower probabilities of filling in. I have two areas I am watching and that is the weekly pivot and HVN in the overnight at 07 - 07.50 and above there I have the O/N high, R2 level and a spot that drew in volume so we will also need to use 09.50 - 2011 as keys on a higher open out of value....below 07 area is 03.75 - 04.25 ( YD highs) and then we have VA high and an O/N low at 1999 - 2001. here is a picture of the O/N session and how I have it marked off... It seems that the 07 area is going to be the magnet price this usual I like the shorts on a first push up and but also will try smaller buys at the 2004 area and also at the 2000 area ...especially if we haven't traded to 2007 yet......if I get a good short then my idea about buys would only be taken with a very small amount of contracts...there is no sense giving money back just for the sake of taking a trade.....keep in mind yesterdays bell curve I posted of last week....we may still just need to revisit that

The key I think will be to see if we can muster up enough energy in the day session to get away from that 2007...if not we will mean revert to that number and drop back down again...employment report is Friday too
Click image for original size
just eyeballing that today....some would have made that into a box like Darvas...or some would use the ideas from this guy years ago...who basically stole from Edwards and magee etc
look at the triangle examples if you are interested in those kinds of patterns..
Thanks Bruce. Interesting stuff. I was thinking of classical Wycoff with his P&F chart prediction.