After the most violent rally since October and one of the most powerful in this bull market cycle, ES is now in corrective mode, pulling back 123 points off the highs. The trade plan for Friday played out perfectly and I wrote Thursday eve: “I did take a stab short personally after we lost 4565 and I will trail it and see if we can get to the 4495-4500 level where I will probably try a long”. This is what happened - we sold from 4565, down to 4495-4500 then rallied nicely on Friday
Good example here of level to level trading, both ways in the same day, as well as multiple entry techniques: Shorting the support loss at 4565 (I got in about 13 points lower), covering at next level down, then switching long at the next support level.
As I wrote above, I believe we are now in a corrective phase/pullback leg. I am going to discuss today what this means, and why it will probably be tricky to trade, and where to look going forward.