Trading Dow Futures: Aug. 18, 2016

8-18-16_1130_wp

$YM-Trading┬áThe Dow Jones Emini Futures┬ácontract for September ’16. Today’s session saw a trading range from 18,575 to 18,505. At approximately 9:45 am (CST) Slow Stochastics crosses down above its 80. Looking at the chart from about 8:30 on the volatility was extreme. Establishing a long position at 7:10 would have made sense. However at 10:00 Stochastics crosses down again slightly below its 80. The wide range bar at 9:55 and the reversal 5 minutes later, both highs outside the Bollinger Band near 18,570, along with the descending MACD Histogram (8,17,9) were a tipoff to the plunge about to occur. About 50 points to the downside at 18,511.