Yesterday, I warned that volatility in price would affect profits due to its impulsive nature, and to safeguard against these swings would need us to have exit strategies in place. I suggested that OS exit would be key to making decent short profits. This was evident today as prices and signal came out of OS and impulsively rallied. Tomorrow could be another surprise due to jobs data, but it does not matter what the numbers are when it comes out, so long as you have a entry / exit plan.
The ES is sporting a possible C wave push up today for a 2nd wave, and could only be validated by an impulsive move lower coupled with a bad jobs data as the "cause". This would assume the count is correct which we can never do, but with the ST still in a Downward position the possibility of a move lower is higher. Watch out for volatility as it is the norm now. A impulsive move lower scenario has me looking at the 200 day moving average as a possible support.
On an intra-day basis, one should look at the signals to stay out of the OB range if one is expecting a move lower tomorrow.
MT: UP
ST: DOWN
PA: NA
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