Trouble in Portugal and Fed Minutes bring out the bears in full force; no new trade entry today.
Turmoil in Portugal's financial system, and the overnight reaction to the Fed minutes caused futures to plummet overnight and early this morning; as of this writing ES (SPX) futures are -20 points. The recent rally has been so over-extended, this may just be the excuse the bears needed.
ES Chart since last night's open:
In any event, I am not recommending a new trade entry today. While the increase in volatility will be tempting, this move is way outside the recommended guidelines for trade entry. The current one-day standard deviation on SPX is 11 points. Even if the market settles to within that range later in the day, I would not trust a new weekly trade entry today.
There should still be plenty of volatility to enter a new position Friday, so I will practice patience for the day today and re-visit tomorrow.
As always, stay keen on your risk management and trade carefully,