Value Area For Tuesday: 652.30-664.00 

Afternoon,

The Russell 2000 gaped up today and formed an IVB(inside vertical bar) at the 127% fib level and the value area high (yellow line on chart). The short entry was at 8:42 am CST with a short entry of 669.80. The trade was up 1.50 points and the stop was moved to break even and the trade broke even. The market sold off strongly and broke the 1st hour low. A trader’s trick set-up but the short entry would have been right at the Value Area low (red line on the following chart) so I passed on the trade. Again, another choppy part of the trading day occured and another IVB formed at S1 (green line). Long entry was at 10:48 am CST with a price of 662.70 and an initial stop of 661.30 (under the TS pivot at 10:54 am CST). Trade stopped out for a loss of 1.40 points. Here is the chart for trade 1 and 2.

Trade 1 and 2

Click on chart to enlarge.

The market continued down and hit the 161% fib level as measured from the TS pivot at 10:54 am CST to the TS pivot at 8:39 am CST. An IVB formed at that level with a long entry of 658.00 at 11:20 am CST. The trade stopped out for a 2 point loss. The trade went into a sideways chop until it broke to the upside, breaking a trend line and forming a trader’s trick set-up above the 56 EMA at 14:09 pm CST with a long entry of 655.60. Here is the chart for trade 3 and 4

Trade 3

Click on chart to enlarge.

Trade 4

Click on chart to enlarge.

Today was a particularly hard day to trade as the market would come down to support areas and form an IVB and then sell off again. That is the way trading humbles you. Hopefully, tomorrow will bring us better fishing.

Best regards,

Ron

This is not a solicitation to buy or sell. 
There is a risk in any investment