at the time of posting this, ES futures are down 47 points, are
basically near the lows from Monday and Tuesday
1st image shows daily chart of ES
2nd image shows various time frames: daily, 195 min, 120 min, 60
min - one thing to note is that despite the rally on Wed, ES
stalled right under that ATR on the 195 min and the MA ribbon got
extremely wide.
Currently the sell off is being blamed on a new Covid varriant
from South Africa. That said this is not surprising: what I've
observed over the yeas is that when the market is already
vulnerable from a technical standpoint, it looks for a reason to
sell. Let's face it, the historic negative breadth charts that
Steve and I have been discussing for over a week (see the attached
charts), showed that the market was in a vulnerable technical
state, and thus susceptible to strong moves lower if the right news
item (excuse) occurs.
It's possible that futures may recover some before the opening
bell on Friday, but for now they are strongly negative, and have
erased all of this week's gains. Remember what I said early in the
week about not automatically assuming the market will close up for
the week just because it's Thanksgiving week.
short term with ES futures trading down 52 points, if you are in
a time zone where it's not too late, you might be able to catch a
bounce soon if you can monitor. Here's a 30 min chart of ES
futures, the ribbon is quite over stretched and so price may try
and bounce eventually - but you need a trigger with tight stop -
I'm simply monitoring for now
This new Covid variant is spooking the market, futures down strongly
Posted by matt on 25th of Nov 2021 at 09:57 pm
at the time of posting this, ES futures are down 47 points, are basically near the lows from Monday and Tuesday
1st image shows daily chart of ES
2nd image shows various time frames: daily, 195 min, 120 min, 60 min - one thing to note is that despite the rally on Wed, ES stalled right under that ATR on the 195 min and the MA ribbon got extremely wide.
Currently the sell off is being blamed on a new Covid varriant from South Africa. That said this is not surprising: what I've observed over the yeas is that when the market is already vulnerable from a technical standpoint, it looks for a reason to sell. Let's face it, the historic negative breadth charts that Steve and I have been discussing for over a week (see the attached charts), showed that the market was in a vulnerable technical state, and thus susceptible to strong moves lower if the right news item (excuse) occurs.
It's possible that futures may recover some before the opening bell on Friday, but for now they are strongly negative, and have erased all of this week's gains. Remember what I said early in the week about not automatically assuming the market will close up for the week just because it's Thanksgiving week.
short term with ES futures
Posted by matt on 25th of Nov 2021 at 11:06 pm
short term with ES futures trading down 52 points, if you are in a time zone where it's not too late, you might be able to catch a bounce soon if you can monitor. Here's a 30 min chart of ES futures, the ribbon is quite over stretched and so price may try and bounce eventually - but you need a trigger with tight stop - I'm simply monitoring for now
Hi Matt, what trigger do
Posted by piclez on 26th of Nov 2021 at 12:34 am
Hi Matt, what trigger do you use on this type of trades? Thanks.
multiple time frames. Varies anything
Posted by matt on 26th of Nov 2021 at 01:14 am
multiple time frames. Varies anything from a nice doji candlestick with CCI divergence as a trigger, or MACD KISS / Stochastic oversold setup