European downgrades with es near 1300 – some tweets and charts for my records (proud of calling the 75.5 bounce on the way down)
This is how it looked at the time on the DAX chart (the NVPOC was from previous RTH and co-incided with the same on ES). Note market selling aggressively but price remains suspended and bid side looks weak. The price action suggested weakness with negative delta and steadily weaker bounces:
It started to drop a bit and at 1288 Benko thought the res I mentioned would be further tested but it was not:
The levels I mentioned above came into play, bounces at 87/85 are and 75.5 provided support for late day rally:
Target on DAX was 2 day LOD (blue line) – it was dictated by what happened on ES as it came close to opening bell and pre-market volume appeared. I did not overstay as I had done in recent days. I scaled well and eventually decided to scale fully and leave the house at the US opening bell.
I came back and watched the close. I thought about a long but held off as the S&P downgrade was due after the market. The selling climax could not take it below the 1276.5 level and there was a weak retest on lower volume. As I said in the comment on the image that I prefer to see price getting tested a 2nd time with a bit more volume for better confirmation of support. As I said in the first image more selling can always appear and your plan is invalidated. Yes it is a set-up and you cant always get what you want especially after a HUGE sell off. This late day long was the only trade of the day for some in the US. I didn’t need to take it was happy to sit out and successfully test my discipline to watch from the sidelines.