This morning I shorted two e-mini units figuring that resistance at 819.50 would hold. My working hypothesis was that the market was weak, and I knew that if so rallies would tend to get shorter until the low was reached.
But instead we got a rally that was as long as yesterday's biggest rally. While this does not mean the trend has changed, it is an indication that the selling pressure and buying pressure are coming into balance. Moreover, at today's 825 high the day's range was as big as yesterday's. This made me think that we might not make new lows for the day.
So after the market fell away from my plan B resistance at 825 I was watching carefully to see if much selling pressure would develop. Instead I saw dullness in the 820-21 area which would have been minor support if the market had decided to go higher than 825 right away. So I covered one unit there. I covered my second unit at 816.50 because, although more selling pressure was evident, the market had returned to the day's midpoint - a fair price given the day's fluctuations thus far. I was playing defense instead of shooting for a substantial profit because it seemed to me that the buyers and sellers were of equal strength and the odds were good that the day's range was already in place.