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ES #F New high and down she goes

The ES continuous contract made another all-time high at 2404.50 and then reversed. It is interesting that Divergence patterns on the Volume Simplified Oscillator occurred on the 234 minute, daily and weekly chart, warning about an anomaly in the market. The last up wave to the new all-time high, was reached on volume of 1.61 million contracts, the highest since April the 26th 2017. This up wave on the 234 minute chart moved only 20.25 points over 3 trading sessions and from the angle of the wave line it is also the shallowest for some time, showing a huge effort to get to the top. The reversal has moved 15.50 points so far, with Volume Flow, Weakness and the Multi Time frame tool that triggered to the down side. Expect resistance at 2388, 2385.75, 2379 and 2376. A break of 2376 can lead to a sell off to 2357. The Volume Divergences and the quick move down on the last bar, can make it difficult for the bulls to gain control again.


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