Hello Traders, wanted to give you all this update showing the current channel we are trading in the /ES S&P 500 futures. The chart below is are classic 4hr chart we have been showing you guys for over the past month or so. Below you can see that we broke out of the rising bearish wedge we have been highlighting and now we are trading in a downward channel. Remember like I said in the video 1335 is the key level you want to be watching. Lookin at the chart you can see we have a possible bull trap from the tail within that channel and we have a slightly rising 200ema right below at 1327. So if we break the 1335 area look for that 1327 area to try and hold as support. Now one thing about traps is that if you can find a trap and notice that the participants are about to get squeezed that are on the wrong side you can take advantage of that and add more size ect... Usually when you have a trap you get a fast move in the opposite direction once those participants reach there max pain and give up. So people trying to by this market down here with really no signs of reversal yet are putting the odds less in there favor. I mean we are pretty sure that once this downward channel breaks and holds we will go higher. That will be the best time to activate the swing trade, but at this time you have to be more active as we chop downward in this channel.
/ES 4hr Chart
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