Rather then 1 big post as the information may be needed quickly.
As you know this week we got a new market to lay eyes on, the Futures market and specifically ES or E-minis which is a big market and big money is found there. Since it's a new market, I wanted to take some time to see how it trades and how 3C signals work on this new market, well a week isn't what I had in mind, and I'm sure it will be an ongoing learning process like anything else, but the signals for this week have been spot on. I'm going to show you this week, culminating with this morning's market open and the current signal.
ES Futures move the market, much more so then extended hours trade. The Black areas are normal market hours, since ES trades 24 hours a day, you see the full movement of the S&P through the ES market. The grey light shaded areas are overnight until the next open. As always, white arrows point to positive divergences/accumulation and red point to negative divergences/distribution. Each tick represents 5 minutes. Each regular hours trading day is marked with the day "M" for Monday, etc .
Late Sunday night, earlier Monday morning pre market, a positive divergence sends ES higher. During trading hours Monday a negative divergence sends Monday to the lows of the day before a rally in to the close, 3C didn't follow that rally and futures stopped moving up in after hours and traded flat to slightly down until early monday in the a.m. a positive 3C divergence showed up at the second white arrow, sending ES and the S&P higher Tuesday morning, a negative divergence during market hours ended that rally and the market stayed flat in to the close.
This Shows the negative divergence on Tuesday as mentioned and ES fell Tuesday nighty until late Tuesday night a positive leading divergence was put in and then a second relative positive divergence in the early Monday morning hours sending ES higher in to Wednesday's open. A large negative divergence in to Wednesday's normal trading hours sent ES/S&P from the best levels of the day to an end of day sell-off.
That selloff continued all night and morning with 3C in confirmation. Thursday morning we had a positive divergence and from the gap down lows the market lifted to fill the gap until an end of day regular trading hours negative divergence appeared, sending ES down last night. Late last night, very early Friday morning we had a positive divergence send ES higher, there's been no confirmation as Friday's open approached and in fact a pretty bad negative divergence, suggesting today's gap up is not to be trusted. Currently the ES negative divergence continues and you can see what's happening with the gap so far in early trade.
I hope the charts were understandable, they are important since ES sets the tome for premarket trade as well, the market -S&P-500/SPY, etc, follow the smart money working in the high end futures market.
More charts on the way.
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