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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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