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Q: What does it mean when traders wait for a 'vomit bar' before going long?

A 'vomit bar' refers to a sharp, aggressive selloff that often leads to overly short conditions, creating a springboard for a long setup.

Traders watching the E-mini S&P 500 futures saw opportunity in the midst of aggressive intraday selling, interpreting it as a signal to prepare for long entries rather than panic. Key price magnets at 6270 and 6324 were identified as likely targets, with confirmation coming from the Nasdaq's rebound after testing its RTH low. A first bounce off the 6,300 level presented a high-risk, high-reward trade that several participants executed successfully. Price action eventually reached the expected range top near 6370, hitting initial profit targets and validating the long bias.

Waiting for the Flush

So, I would rather wait for a scary flush and then get long. I think that's the easier trade. As soon as you start seeing that vomit bar — that heavy, aggressive selling — your very first thought shouldn't be, "I missed it." It should be, "Oh yeah, come on down. Where are my mapped-out longs? Come on down. Please vomit. Please vomit for one to three hours."

Why? Because when ES gets overly short, it often springboards to the north. We’ve seen that time and time again.

Chart Magnets to Watch

Now, I believe the two key magnets on the chart are this VPOC at 6270 and the volume pocket (VPO) at 6324. I would expect us to get to one of these levels today.

We’re certainly seeing evidence of selling in the RTH session. If it can’t reach the overnight low — and hey, what do I know — but if it takes that out and we break the trend line, that might give us something to work with.

Still, that keeps us in the red area. Not my favorite trade in the world, but if it gives us evidence, I have to trade what's in front of me. I’m just not shorting this.

NQ Leads the Way

We’re pretty much getting exactly what we expected. NQ took out the RTH low. If that rebounds back up, we’re likely going higher. NQ was the only thing holding ES back.

First Bounce Long Setup

Ideally, if ES comes back into about 6,300 and gives a bounce, that would be the first bounce. And if you take that, you have to realize: first bounces are always the most risky.

We are in the red zone of chop, but everything is telling us now is the time to be looking for a long.

Live Trade Execution

Okay, now I’m going to speed up the video. That was our entry. The bulls were showing strength — it couldn’t even make it further down to my first mapped-out trade. You have to trade what’s in front of you.

So, we went up to the opening, which is also the Sunday opening. Pulled back to that 6,300 level — there’s your long. Multiple traders took it.

Now, your only goal is to play perfect chess. It’s fair value gapping up and showing continued strength. The all-time high is above. The expected range is up there at 6370, which would have been the best-case scenario.

And here we are, arriving at our first take-profit.

Closing Remarks

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Trader FAQs on This Setup

Q: What does it mean when traders wait for a "vomit bar" before going long?
A: A "vomit bar" refers to a sharp, aggressive selloff that often leads to overly short conditions, creating a springboard for a long setup.

Q: Why is the first bounce trade considered risky?
A: The first bounce after a flush typically lacks confirmation and can be easily faded, making it one of the riskiest long entries.

Q: What are “chart magnets” in futures trading?
A: Chart magnets are price levels like VPOCs or volume pockets that tend to attract price action due to previous heavy volume or structural significance.