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ES #F New high and sharp reversal
As warned on the 8th the market can react sharply on news which proofed to be true on the 9th. On the 9th we warned that a bar close above 2438.50 can spark bullishness, which became true and another new all-time high was made at 2443.50. The very next moment (bar) the market reversed sharply and traded to a low of 2412.50, a reversal of 31 points in less than 4 hours and closed at 2428.75 (16.25 points higher again). Markets closed on a mixed note on Friday as a sector rotation trade pitted the top-weighted technology sector which took a heavy blow. On the technical side at the moment we have Selling pressure, Downward Volume Flow, Price action break down, a little bit of Weakness and Declining Up Wave Cumulative Volume with Divergence on the Volume Simplified Oscillator. A bar close below 2417 can lead to testing of the 2397 and 2387 levels. The aggressive buying (Positive Delta volume) on the Smart money down bar at the last swing low suggests hidden buying in this down move which support the view of a potential Spring to the upside in the making. A bar close above 2439.50 can lead to new highs and 2459. Some more volatility is possible.
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