JOIN OUR MAILING LIST
Newsletter / Blog
ES #F Pullback and then new high again
Yesterday and the day before we had a Pullback/Reversal warning signal and the ES made a Pullback Yesterday of 18.25 points from the high, before advancing to another all-time high today of 2571.75 with another Pullback/Reversal warning today. It is interesting to note that the up move at the close which continued in overnight trading, was made whilst the Simplified Volume Oscillator was below zero (In overall selling pressure conditions) and that the last up wave (still in progress), has a very steep angle with Negative Delta volume (the highest Negative Delta volume since September the 5th). We have another Divergence down and the previous 4-hour candle on the candle stick chart closed way down from the high (in the low third of the candle). All this looks very much like an Up thrust occurred and one should be very careful to take any long positions from here at the moment. One argument can be that absorption was taking place, but if there is no follow through to the up side, the Up thrust will be confirmed and this should lead to more weakness and a substantial pullback from here can occur. Should a substantial pullback occur, our proprietary reversal pattern points to the 2492.25 area. The $VIX advanced to nearly 12 Yesterday, which is an important volatility level, before reversing and any rise again in the $VIX from here can give a clue if a substantial reversal can occur from here and if possible wild price swings will take place in the near term.
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.
|Back||Back to top|