Judging by the way the ES, YM, RTY & NQ are trading, there appears to be a trap being set during the overnight Session.
Volumes are extremely light, liquidity is evaporating.
At the moment the ES had traded IntraDay Support at the 2646.25 dipping to 2645.25. Difficult to know if we will see a second test that holds or fails. Asia traded a 24 point decline for the ES and 229 for the YM. NQ is in no mans land, RTY is a complete mess with sloppy setups its stock in trade.
The YM needed to close above 24741 today, it missed by 6 ticks @ 24735. The ES need to hold the 2770.25, it missed as well.
One of two things will happen now that we have confirmed a retest of the lows.
Tomorrow we should see the ES retest the 2700 level, perhaps falling short at the 2694s or thereabouts. The YM should pull up to retest the 25308/11 level. Should either break then we are running higher, significantly higher. I assign this a lower probability as once we retest these levels, we should fall back to the lows.
The Monthly upper trend line sits right at 24,000 – the lower 22,000. There is a Daily gap just below that level.
Should Asia trade under 24491 this evening, 24411 would open.
It’s difficult to tell If w’ere going sharply lower or will have one more backtest of the upper resistance, Price will let us know this evening.