BREAK & TREND (AGAIN)

Today was our first day to post the daily BOTs in the blog.  See the DAILY BOT page for this information.  The Wednesday ES and 6E BOTs  were the same as those for Tuesday.  Although the overnight and Euro Zone price action was good, the BOTs are set in the pre-open for the markets, and that price action provided no change for the BOT Range.

We have repeatedly stated that when a break out target (BOT) hits and breaks, we will expect a trend to follow, provided it is not a failed break (FBO).  Today's trend was extensive for the ES, and the 6E provide both long and short opportunities. Trades have been removed, to focus on key points in the day.  Trades, and alerts to potential trades, are provided in the chat rooms.


TODAY:  ES AND 6E


click to enlarge

Zero is the BOTs set in the pre-open time. At point

1.   we see a failure to test the upper (or long) BOT, and the 20-EMA fails.  This was followed by the nearly five point selloff control bar. 
2. Price consolidates and fails to reverse the short target.  Price runs below the EMA in a bear channel.
3. we see a failure (MAXT). 
4. The EMA continues to be resistance in the #4 area.
5. we see another FBO.

Pick your short.  There were numerous opportunities for the entry.



6E

The long and short break outs are set, and unchanged from the prior day (0).

1. The first BO is a long, and the price fails to test the low bot around 9AM EST, and follows the EMA in a bull channel.
2. Second BO play
3. The EMA held at b10, and was a long with a stop above b12 and the long BOT.  The failure at b14-15 allowed a short to the EMA.
4. EMA and long BOT play
5. EMA and long BOT play
6. An EMA/long BOT failure becomes a short.
7. An EMA and bear channel failure at the lower (short) BOT.  The EMA becomes a strong resistance, as the 6E continues to sell.

There was a comment today about the "wide range" for the 6E.  They are what the market allows.  If you have no other play, consider using the BOTs.  I will leave the count to you had you taken the short BOT;  6e or ES.