Today and tomorrow

Here is a 60 minute bar chart of day session e-mini trading. This morning I thought the market would develop a range of 998-1012 and so I bought one unit on the early reaction to 1000. Instead we saw almost a carbon copy of yesterday's action. I still think midpoint support at 987 (purple dotted line) and/or the lower green dash channel line will be strong support. Indeed the next rally may well have begun - note the shakeout below yesterday's low which was quickly reversed this afternoon (blue arrows). I bought a second unit near the shakeout level at new lows for today, but I got out on a rally to the midpoint (near 995) of most of today's trading activity. I didn't think we would rally much more than that late in the day because early tomorrow the employment number will be released.

I am still playing for a move to 1015 or so over the next couple of trading sessions. Looking ahead further I think we shall see the e-minis trade near 1120 during October.