S0 we made a new high last week in the ES at 2866 and that new high was sold into Monday with a low of 2789.5. Today we had a sharp rally the retrace 61.8% percent of the move from high to low. We are still above yesterdays low and below the high of 2866. The NQ made a new high last week of 7544.75 which was sold into Monday to a low of 7290. We bounced sharply off that low and retraced around 61.8% from the high to the low . Now, we have established levels to watch and trade off.
I do not believe the market will trade the same way it has virtually straight up without a pause. I think we get it now and that will be the way I approach the market for the near future or till the tape shows me otherwise.
Tomorrow I will have work done on the market tells which include major sectors and key stocks to help give us clues as the next moves… This can be a great time to trade if you remain tactical and flexible.