ES - September 3rd - Daily Trade Plan

September 2nd - 4:10pm - Update & Trade Plan

I said last night that " Below 6459 and we will need to most likely get out the way and let price flush a few levels". That we did overnight right before the European open, we flushed 6459 and could not reclaim the level, then tested last week's 6430 level, bounced around 20pts and flushed again down to 6382, bounced and back tested the 6423 resistances. I posted a note at 11:20am EST " IF, price can't hold 6383, look for a flush to 6372, 6358 and a reclaim of those levels above. At 11:53 we flushed down to 6371.75 and started to build a nice base and then went higher the rest of the session. Where are we closing? Right into the 6445 resistance that is important to clear to keep things moving higher!

Plan for the overnight session/tomorrow am as follows:

Our first support down is 6421, 6412 then 6397. Ideally, overnight we can pull back to the 6383-86 level, flush, then reclaim or even better, flush 6371.75 then reclaim for continuation higher.

I did say yesterday that "I am still bullish above 6390, but a break below this level would be a warning to the current trend." We broke below and recovered it today. We could have another bounce left in the tank at the levels discussed above but would ideally see a slow grind into those areas, and not a big flush. Pretty simple for tomorrow, still cautiously bullish until we clear the 6455 level that we broke down from last night.

My lean is we chop around overnight between 6445-6397 with 6385-87 the lowest we would want to chop down to, or we will most likely need to retest 6371 sessions low. IF, we lose the session low, the levels below are of interest and level reclaims will be expected bounces higher. IF, price is flushing, 6368-64, 6333.50 are the 2 big levels of interest to me.

I will send out an update tomorrow around 6am EST after price digests the overnight session.