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Traders Continue Profit Taking, NFP Ahead- Sep 4, 2020

MARKET COMMENTARY -Non farm payrolls are giving buyers a reason to bottom pick. Buyers have had trouble recapturing the VWAP, leaving us with negative pressure. Remember that we have had a huge move to the upside without any rotation. This leads to movement that opens us up to sharp fades. The throwing of caution to the wind is seen with a damp VIX that has come to life. Volatility continues to increase as traders will try to pick the bottom once more to carry the higher high, higher low formations to end the week. Below 93.2 the $DXY will continue to have trouble holding support bounces.

Moving to recapture the VWAP with pockets of savage downdrafts is still the likely price flow.

INTRADAY -Keep an eye on the 4-hour resistance and support that we discussed in our study webinars and expect battles at these regions as buyers have a lot to prove to maintain bullish price flow on a weekly and monthly formations. BIG time frames will help you position with the wind at your back.

Deep dips remain staging grounds for buyers but momentum is clearly against them in the short term- quick strikes to support and back to resistance appear to be the highest probability for success today- BUT dips could certainly get deeper as price action takes little time for moving into support tests.

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This week’s calendar

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Econoday Calendar

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TRADING LEVELS

If you find yourself being chopped up, widen your time frame or take time away from your screens. This is a time when less is more.

TRADING VIEW & ACTION PLAN
We are in trending breakout but without a signal of strength. This means that deep dips could occur before a move upward. This is a grind with candle retracements and we are seeing how savage the retracements can be, but bullish traders will attempt to be bold once more. As long as we hold or recover the area near 3451- 3492, (currently battling right now), we remain in a path that shifts us north and we are much more likely to trend into 3515.5 and beyond into higher Fibonacci targets of 3585, else we slip back into the shorting zones and supports in our range near 3291.75 and lower. Remember that we still have no strength signals -we should be careful not to add to positions that do not move properly into targets.

Intraday LONG trading from support edges like ABOVE the VWAP or tight moving averages will give you the least risk event for engaging – removing your trade at resistance will allow you to participate – understanding that countertrend bounces can be swift and sharp but will likely fail under the broken structure of the market.

Intraday SHORT trading from resistance edges like the old highs or bigger moving averages will give you the least risk event for engaging. Follow the candle trend until candles stop breaking higher.

Here’s a link to the METASTOCK software– you can have your own copy of Metastock to run these tests and setups using Target Rich Trades.

ES_F Sept contract
Target Rich Trades from MetaStock –

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