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Relief Bounces Afoot- Sept 9, 2020

MARKET COMMENTARY – Traders are in the throes of a relief bounce but noting the Metastock chart below, there is certainly a few worrisome positions to consider before jumping back in with both feet. This relief bounce will allow us to remove some long trading action that is now suspect. Some market analysts are suggesting this could be a fade that will last through the month of September and into October, but that will remain as suspect if we hold support.

Holding the VWAP with pockets of savage downdrafts is still the likely price flow today also.

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 monthly formations- technical damage continues to be extreme. 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- 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

********If you feel you need some help understanding how price moves, remember you have the COACH’S CORNER for video review.

THINKORSWIM USERS –Chart share links for ES_F , NQ_F , YM_F , CL_F , GC_F – levels here for download to the ThinkorSwim platform

LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET

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TRADING LEVELS-levels remain the same

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 retrace of last month’s support levels as traders (buyers in particular) will need to strengthen their positions to defend the tests of deeper support. This means that deep dips could continue before a move upward takes hold. This is a whipsaw grind with tests of both support and resistance ahead and we are seeing how savage the retracements can be, but bullish traders will attempt to be bold once more. We hold below the area near 3451- 3491- giving sellers the overall advantage in the short term, strengthening the chance that we slip back into the shorting zones and supports in our range near 3291.75 to 3226 and lower.

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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