ES Running Out of Lives: March 6th Chart and Trade Plan
Last week was ES stuck on repeat with the same trade playing out essentially 5x (Minimum): Wash out beneath 4300 and recover. The first two played out with big pushes above 4390, the last several though got weaker and weaker, with price stalling at 4360 on Thursday, then on Friday unable to even get above 4330 on multiple pops. This presented fantastic day trading opportunities, but this also demonstrates a clear principle of technical analysis: The more knocks at a support, demand gets absorbed and it gets weaker.
As of tonight’s open, price is now probing deeper into this zone and it is now at an very high risk of breaking down. This should be a very volatile week incoming, but perfect for tactical day trading. Here’s the plan