Why I think the rest of the week will offer good profits

Tuesday's session was what we expected it to be: surge moves to break the clustered stop orders from Monday's non-range event. We got what we expected from the markets and took full advantage of the opportunity, as always.

ES (+$50 per index point)

S&P 500 futures opened lower, then promptly blew through S1 and S2 values like speed bumps. I'm sure somewhere out there a few thousand emini traders playing the counter-trend game tried to buy each value and got whacked in the process. Those players are necessary to provide liquidity for continual short trade entries which made money hand-over-fist in directional fashion.

Why try to pick up dollar bills off the tracks in front of moving trains when it is so much easier just to catch the train at each stop, then ride it for the big money trip?

After the initial hour drop, volume was mostly exhausted and remainder of the day was spent rolling sideways in a range. There were some +2pt and +3pt little swings to be had, but for all purposes the directional move ended by 11:00am est. Fast & furious at first.

ER (+$100 per index point)

Russell 2000 futures also opened on sell signals, blew through S-values on the way lower and offered significant profit swings all day. A 12:30pm EST buy program in all indexes popped ER (and ES) off S3 values (not shown) up to the afternoon swing high, which was a short entry itself. The subsequent drop to session lows finished the day near its bottom.

ES (+$50 per index point)

Daily chart view of the S&P shows a 20-point range from late Monday afternoon through Tuesday afternoon. Remember, the index had been pinned inside a smaller total range than this for several consecutive sessions. We knew it was going to bust a move, and weren't the only ones who predicted that obvious pending occurrence. The 1278 - 1273 zone has obvious bottom potential if indeed the major indexes are heading higher in time. This week should see resolution to the stale range that pushes price action in its next direction for some time to come.

ER (+$100 per index point)

Russell 2000 holds well above initial levels of support, with 715 confluence of a fib swing value and 50-period MA one likely magnet of attraction below. This one remains bullish unless / until 697 is taken out convincingly. Otherwise, it's still home in the range.

Summation
Monday was tough sledding for intraday trade action. Tuesday made up for it and then some. Three days left to work inside this week... all of them should be good or better for action-packed profit potential!

Trade To Win
Austin P
www.CoiledMarkets.com
(Online video clip tutorials... open access)

Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures, equity options and commodity markets.
Mr. Passamonte's trading approach uses proprietary chart patterns found on an intraday basis. Austin trades privately in the Finger Lakes region of New York.