Assessments / Blog

ES #F Selling pressure

The ES continuous contract made a pullback to 2402.75 and came within one tick of the top of the resistance zone at 2402.50 identified yesterday. The lowest point up move (9 points) the lowest since December the 9th 2016 and the Negative delta (aggressive selling) in this low up move, should have been the clue for the down move that followed, since the previous swing high. A safe short could have been established when the bottom trading zone at 2408 was broken and the down move lasted 5.25 points from here. The current up move in progress show also Aggressive selling so far, with Volume Flow to the down side and Selling pressure. The 3 day VWAP is at 2410 and when broken and Selling continues a short can be taken with targets at 2407.50 and 2404.50. If there is continued follow through from here the 2396 to 2388 area can be tested. Watch out for bar closes above 2416.50, which can end the current selling pressure and should lead to continuation of the longer term up move.


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