BOTS & TRENDS

The BOTs give us three pieces of information:  the long, the short, and a trading range.  As we gather more information, the BOTS may give a glimpse of where the market is likely to trade.  A break of a BOT is expected to develop into a trend, however a failure offers aggressive traders a chance to enter contra trades, i.e. a short at the long BOT if it fails, or price reverses.


TODAY:  6E & ES

The 6E broke long on our early A.M. setups, and the failure was a valid short to the middle of the range.  B14 was establishing a higher low from approximately 7 AM,  and at the middle of the range.  Aggressive long entered, then added at the EMA+ and long BOT area.  The EMA acted as support after the second break long.

The ES moved in a similar fashion, going long and reversing to the middle of the BOT range.  Bears entered to spoil the bull run  and pushed price down to 1327.  Aggressive bulls entered, and added at the EMA+  and long BOT, which is the conservative entry areas.

The mid day focus was upon the bearish channel retrace.  Bears continued to enter at the upper TL, as each bull attempt fell short and only allowed approximately  1/2 point runs.  The bulls appeared to give a little payback to the bears, as they stopped the bear trend at 1327.

When the day finished, we were basically in the middle of the two extreme pushes by buyers and sellers.