They YM and ES sold off hard last week when the market structure highs formed and triggered short at 10,466 and 1126. The worsening jobs and housing picture coupled with new proposed banking regulations have begun to take their toll on a market that was in need of a bit of a correction.
Earning season is in full swing and the Fed’s decision on interest rates is on deck. The tendency is for the markets to move toward neutral ground (daily 13 period ema shifted +3) ahead of the Fed but the volume has picked up on the sell-off. We’ll see who wins the tug-of-war.
To Your Trading Success,