Gap and Volatility

What levels are we trading this morning with the gap and volatility in the @ES futures?


By Corey Rosenbloom

Let’s flash-chart the market:

In this morning’s Market Briefing with TradeStation, I highlighted the pre-market gap-down into the 50% Fibonacci pivot at 2,040 and the upper ‘bounce’ target resistance near 2,047.

The bounce took us into this resistance target before collapsing back to our opening low and 50% level.

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In simplest terms, we’re trading the movement toward and away from these intraday targets which stretch to 2,034 which is Friday’s gap-down low and the 61.% Fibonacci Level.

In the future, a breakdown (deeper retracement) under 2,034 likely sets up a sell-swing back toward the 2,020 level just as a breakout from the Fibonacci Grid above 2,047 could trigger another bullish reversal like March 29 and April 1.

Whatever other strategies you’re using, be sure to focus on the Fibonacci Grid and these key levels for your trades.