Update at 10:45 am

Here is a five minute chart of the e-mini day sessions. I was short early today at an average of 839.75. But then a potential volume climax bar developed (red arrows) so I waited to see if the market could rally afterwards. The subsequent rally was the biggest and longest of the day so far so I covered at 841.00. My concern was that the market was apparently in an 833-848 trading range (using the overnight extremes) and since it was bouncing from the low of the range it more likely than not was headed back close to the high of the range. Since my bias is a bullish one I didn't want to let a short side trade show any signficant loss.

So far the market appears to be in a trading range near the top of my range estimate. I am sticking with this estimate. Unless we see increasing volume on the upside first I plan to take another shot at the short side.