Wave Chart at 11:50 am

Here is today's e-mini wave chart. Sellers are still in control as you can see from the fact that the down wave on the chart carried further and lasted longer than the up wave.

I shorted one unit at 697.50 (first blue arrow). The market proceeded to break to new lows for day session trading on a very high volume bar (red arrows). The question in my mind at that point was whether or not this would prove to be the start of a high velocity breakout. The two subsequent bars showed very much reduced volume. I also have observed that around 11:00 to 11:30 am the market's early impulse move typically stops and is followed by a period of two or three hours of indecisive trading. For these two reasons I chose to cover my short position, with the idea of putting it back on later today.

I think any rallies we see from here will be limited in size to 9 points at most, the length of the first up wave of the day (purple rectangles). I still think the day's low will develop near 678 (bottom edge of blue rectangle).