Tuesday, February 02, 2010
Breakout From the Morning Range
Note how the ES futures (above) rejected the volume bulge between 1086 and 1088 (and the VWAP line in the same area) with substantial buying interest and a bump up in volume, taking us to the R1 price level from this morning's tweet. We can view such moves as breakout moves, as the market rejects one level of value and seeks another. If the breakout is to lead to an upside trend, we should hold above that volume bulge area and above VWAP.