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11/6/2019 ES Daily Recap

Going into today, it looks like not much has changed in the overnight I was looking for a short side near the 84-86 resistance as we trapped a decent amount of longs at that level and as long as volume did not pick up it would have been valid. For the long side I was looking for a quick flush down to 3063-61 for a long since it was untested and is an important zone.  We had a tight range for most of the day, until there was a negative news headline regarding the China deal. We ended up slicing through support and bounced ahead at 3064. I expected longs to be trapped from the start of the break, so I was looking to take a quick short for a reaction. 

The psychology of this idea was that when we flushed, the retail longs that were playing off the support got caught and as soon as they got near break even it is a good chance they would get out. At that point, their mental capital is exhausted so they would not care about making a profit anymore but escape from the mental stress. We did have a decent reaction at the break when price action moved back to the start of the move. There was no other clear ideas at that point as price moved in a very tight range for the rest of the day until grinding slowly upwards near close. 
 

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