September Contract

I have started early today in order to roll over the ES contract from June to September.  This has meant changing the location of the S&D zones.  They have all gone down around 6 points.

If we look on the 8K tick chart, we can see what looks like a selling climax before the impulsive rally, after we had seen accumulation on Wednesday evening.  This climactic action was not apparent on the June contract.  This look very much like a Head and Shoulders pattern, with accumulation on the left shoulder and the selling climax as the head.  Now we look for price to retrace back down to form the right shoulder.

So we may actually get a down move today, rather than the up move to the next supply zone that I was expecting.  However, the market will tell us which direction it is going to take in the due course of todays trading.  So we should not go in with a bias, but trade with the prevailing intra-day direction. Looking to engage when price retraces.

Here are charts with the September contracts: