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Assessments / Blog 2017-09-15 ES #F Absorption or Distribution? Another narrow range Smart money up bar at the top (distribution?) and no bar close above 2495.50 or below 2485. The market is winding up for a substantial move up or down. The narrow trading ranges the past 2 sessions are like a spring winding up waiting to be released with force for a bigger move. Is selling absorbed by the Smart money in anticipation for the next move up, or is Smart money selling (distributing) big into all the buying? A bar close above or below the levels mentioned should give more certainty. We had a correction warning (White dot on chart) on the weekly ES chart 5 weeks ago. Corrections can happen on average as many as 5 even up to 8 weeks after this warning signal. See weekly chart with COT indicators attached. Seasonality is down (through the zero line) and the Hedging indicator is up through the 50 percent, making the odds for the Distribution argument better in our view. This is long term signals and it is not impossible that a run to another new high will happen first. See results of our Strategy on the MTF Tool trading the EURO RISK DISCLOSURE: 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.
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