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Assessments / Blog


2017-05-18
ES #F Consolidating


The Smart money Doji bar after the last swing high (and all-time high on the 16th) and the Divergence anomaly together with the behaviour of the $VIX index, warned about previously was the clue that a larger sell off is imminent. We warned to watch the $VIX for a sudden rise from the lowest levels seen last in 2006, and that is exactly what happened. We also gave the 2176 level as a target and support level and said if broken, a sell off to 2357 is possible. After the break of 2198 where all indicators fired to the down side, some resistance was found at 2376, a move of 22 points or $1100 per contract if taken, which was a low risk trade in our view. A second entry was possible at 2376 with resistance at 2157 a move of 19 points or $950 per contract. Support was eventually found at 2354.75. That is a total of $2050 on a single contract, if the signals on the indicators and tools were followed.

It looks like price is consolidating after a down move of 49.75 points, with the last 2 bars trading within the range of the bar before that. A little buying pressure is developing and weakness is cooling off. A pull back is possible to the 2369.75 to 2385 area and a wait and see attitude at this stage is advisable, until clear signals develop. Join the FB group "Trading For An Income" here: https://www.facebook.com/groups/1832814697041353/

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The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading.

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