Note how we have built significant volume between 1133 and 1134 in the ES futures (above; blue arrow), as sellers have joined in the market to absorb buying. That has helped cap strength in stocks and led to a couple of moves back to VWAP. Once you see that market dynamics cannot sustain moves to new highs, those reversions back to VWAP become good short-term trades.
Nothing in the present day's trade, however, contradicts the intermediate-term bullish scenario outlined earlier today. For that reason, I'm looking to the short side only for brief intraday trades.
Meanwhile, I see that 20 of the stocks in my basket are trading above their opening prices, 20 below. That reinforces my working view of today as a range day.
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