ES traders came close yesterday, but missed a fairly decent move.
The overnight rally stopped a few points below Nat’s Sell level and the subsequent decline stopped some distance above her Buy level.
Traders who tried to enter short at her Keyline were eventually stopped out on the retracement if they failed to catch the reversal from the low of the day in mid-morning.
In the past two days the intra-day 30-minute chart has formed a double bottom pattern, which helped to hold the price up for Wednesday option expiration.
But on the daily chart the exhaustion island gap pattern still looks bearish. The daily PMO indicator keeps declining, and we can’t eliminate the possibility the price will test the 2250 level today or tomorrow.