E-Mini futures opened flat Sunday evening just above the low of Friday’s opening range and traded sideways for close to 2 hours before selling off 8.5 points, taking out both Thursday and Friday’s lows, and the 2 1/2 day trading range by 2 points.
The buy-the-new-lows algos kicked in and the E-minis then rallied from 2 -SDs out, up through the VWAP on diminishing delta volume, and relatively flat cumulative delta, and traded up to the 1st +SD, the evening’s POC, and the 38.20 fib retracement, which were all at 1074.25, and then sold off to the VWAP at 1072.
Over the next three hours the market rallied almost 10 handles up to the 1082 area where the market met with selling against the high of Friday's value area, the 200MA, the top of Friday's opening range, the 2nd +SD, making a 2bar double top at the R2 pivot point @3:30am et. The market then made the round trip selling off 10 points, making a higher low and chopped around till Monday's opening.
The market fluctuated more last night than it did during Friday's day session, which gives me some hope for today's trade. Also, it is rare that we trade within such a tight range, for this long.
While the market made a range extension to the downside early last evening, it was met with buying, which drove the market back up to the top of the range. This leads me to believe we may be short term oversold, and although the bears are in control, we could see the market firm up temporarily.
If E-mini-s trade above the VWAP at 1075 and take the high of the opening range on good volume, I would get long, and add above the 200 MA at 1080.
