The market this week has been bullish and extended which makes for some fun trading. We’ll continue to drive the following point home: the daily Ichimoku Cloud has and will likely continue to be a great compass for buying dips as the overall market, or E-mini Futures (ES), continues to reach new all-time highs after bouncing off the Cloud.
Keltner Channels are another good indicator to keep an eye on at the moment, especially the 2+ average true range (ATR) lines, since they seem to be working as a limit for the market. This means that as we near the 2+ ATR line we need to start playing a bit more defensively. Watch the video below to see how we can use the hourly and 4-hour Clouds as gauges for market moves and also how the Non-farm Payroll (NFP) job report may affect things tomorrow.
Stay Focused!