Today's ES action - Thursday 17 May 2012

Well, another day of big moves on the ES.  The first big move was at the high of the day and a supply zone was formed right at the top.  Price returned back at 10:00 am BST and promptly fell, reaching a low of 1300 falling around 30 points from that early morning supply zone.  I wished I could get up to trade the London session as there seems really good trade set up during it.

The early morning supply zone was on all the charts.  The next supply zone on the 10K volume chart would not have triggered, but there was a supply zone on the 2k tick chart just below it that would have got an extremely good trade for around 20 points. 

At no time over the last 2 days have we seen a demand zone formed, which tells me that we have more downside.  The volume today was very high, but that could be due to price having to break through the throwback area that it bounced up from yesterday.  We may get a large retrace tomorrow as we are now at the important 1300 level.  And if memory serves me well, I think 1292 and 1285 could be important numbers as we have had large up moves from those areas when price was last there.

The RPM is really spotting these zones really well and I am gaining more confidence to taking these trades with very small risk and big profit potential.