This was the second day of a short-term down cycle of the two-day Rate of Change Indicator for the ES Futures. The market will probably test today's lows on Monday, and we may see a correction to the upside.
After the market jumped up on the 0830 ET employment news, it is easy to think that the market will trade up on the 0930 ET open. However, that move was nothing more than a normal correction in an otherwise short-term down trending market. Market Structure dictates that as long as the market is making lower highs and lows, the high probability trade is to the downside. Large profits could have been made simply following the 20 and 38 period EMA crosses during the last two days.
Many times it is best to turn your brain off, and simply follow the rules of market structure.
Charles
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