Assessments / Blog

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:


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.

Trading Forex, Stocks and Options, Futures and any Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith.