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Assessments / Blog
ES #F Supply continued
On the 28th of December (Yesterday) we warned about supply entering the market and to watch for sustained Selling pressure. This is exactly what happened Yesterday and the 2679 level was broken. Comparative weakness has developed, Volume flow is to the down side and the Multi Time Frame Tool is firing down, with Volatility increasing. The result was a 30.5-point ($1525 per contract) move down from the new all-time high at 2698.25, taking out the previous high by one tick. There were several clues, giving clear warning signals:
Follow through to the down side or not, will be key for the next move. On the daily chart Yesterday’s price action looks like an up thrust (price penetrated previous resistance/high and reversed immediately down to close in the bottom half of the bar). Price can move sideways from here and probably will make a pullback upwards, but our next target is 2651.75 if no bar closes above 2679. If 2561.75 is broken our longer term targets is at 2620 and 2605.
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