Action: Place Sell to Open limit order at 1888.50 on the S&P 500 March contract (ESH14). We want to short this overbought level if reached on a momentum move after the Non-farm Payroll report. Let’s see what happens but this price matches some Fibonacci resistance levels and should present conditions that are ripe for profit taking.
Update 9:23am CST: Prices traded to within 1 point of our 1888.50 sell limit order and then sold-off -13 points before recovering back to 1880. We are initiating a short position at 1880.50 and looking for a retest of 1874 which is today’s lows. Additional targets are 1870 and perhaps 1860.
Update: 12:09pm CST: Take the profit and Buy to Close ESH14 at 1774.75. We’ll take the +5.75 point gain and protect profits as prices appear to be making a higher low and haven’t broke the 1870 support level.