The assumption in the stock indices is that the path of least resistance is up. If this is the case, retracements should be in the 1-2% range and be short-lived. If looking for short trade set-ups intraday, and there will be some good short trade set-ups regardless of how high the indices go, be particularly disciplined and take only well-defined set-ups at extremes.
Today may be a narrow range day in the indices; this often occurs following wide range ramps to the upside like we had yesterday. What should not happen is yesterday’s range being retraced. Any excursion down into yesterday’s range should be relatively shallow.
A chart is posted of the ES below all the comments.
Notes/Bonds are off recent highs but still above critical KRAs.
Currencies are all over the place; trade them from shorter term structure.
I still like copper short per recent reports.
I still favor a downside resolution in Gold, Silver is not likely to go up if Gold spikes down below 1540.
Crude is not at ideal location; trade from shorter term structure.
Beans to the downside would be my trade in the grains.
