Roller Coaster

Wow, what a reversal intraday after we hit lows of 812.75 on the ES. There were a few decent short setups early on but at midday the shorts simply got cover-happy. The rally pulled back in the last hour after it got to the 844 ambush short zone. Coming back down to 830 the ES bounced at that level, which was an abmush long of the late day advance. It held perfectly and the ES added another 10 points into the close. Just an unreal sort of day.

Tomorrow is options ex for Jan and that means anything can happen basically but I have a feeling the market melts up a bit higher Friday. We have a gap fill zone from Wed. on the table up to the 866 area. Pretty good shot we attempt to fill that gap if momentum stays on the bulls' side.

For Friday, the pivot point is at 834. We are trading 845 right now overnight. I would like to go long on a test of the pivot in the morning but I'm not sure it gets down there. If not then we will be looking to buy ambush longs as long as we stay above that pivot. I think a first target could give us 857. And then if we rally higher than that we should hit some selling around that gap fill zone of 866.

If we fail to rally then a break of 826 would make me pretty bearish going to the weekend. We'll see what happens in the morning. Trade safe.