20060608 The ES morning sell off was an example of capitulation setup. 3 consecutive -1000 readings on the NYSE TICK could have given heads up on irrational selling. We long the ES June 1250 calls at 9.50 to take advantage of a potential rebound. In addition, the combined CBOE put call ratio spent the entir e day above 1.0, which is a contrarian indicator not to position trade short today

E-mini S&P 500 chart