A real Gap and Go higher day. The NYSE Tick started strong but quickly fell back into a weak posture producing levels that would normally occur during a down trend in price. Not the case though, as the ES price kept powering higher for the majority of the day.
I found the market internals interesting today as well. My CAT Indicator was "Out-of-Synch" again for most of today. Similarly, the Advancing issues (ADV) and Declining Issues (DECL) in the chart below did not seem to match the ES futures price behavior either.
The Advancing Issues were relatively flat for the first 4 hours of trading while the Declining Issues kept increasing and increasing for the first 5 hours or trading.
The biggest decline of the day happened when price tested twice the first hours price range. The mystical 2X price of 1549 held initially and price retraced just below 1545. Then the ADV and DECL got in synch with the price action and produced a beautiful uptrend move. I caught the first half of this move. I knew I should have just walked away until near the close of the session, but I had to get cute with my stop and get chopped out (to the Tick) before price continued higher into the close.
Trade Wise, Trade Well
John
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