Morning long position opened on: 1) nq & xle (the weakest sector for the session at that moment) posting lower lows; 2)diver signal that have sparked ES to climb higher litbit was too weak, not enough to reverse mkt to the upside. Closed on: 1) strong $add performance relatively to ES; 2) strong divergence calling to buy and 3) $tick too easily was pulling back above zero.
Last hour trade entered on: 1) bullish internals ($tick: 0t<-800 w/ 2t>+800); 2) betting on usual volume growth closer to the closing bell to support bulls attempt. Fixed with zero result because: 1) amount of bearish divergences was soaring; 2) no bulls strong superiority, plus internals not as bullish as needed to steadily climb higher. The possibility of ES testing VWAP was growing. But in fact, ES have easily broken VWAP and closed below it.
Last week was futures & options expiration week (or call it OPEX week). Thats why to make decision on market reaction to discount rate hike on friday was too unwisely. Today, on monday, leading US stocks indexes lost near 0.1-0.2%. Thats not so much. So we didn't get broad stocks selloff that means market accepts Fed move. Still, note that todays volume was well below the daily average so far this year. So it's not a time to strike the balance.
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