ES Update

This is interesting because we can see 3C at 5:30 a.m. when the LTRO (Long Term Repo Operation) results were announced by the ECB.

 This 1 min ES (S&P E-mini Futures) is backed up to see the overnight action in Europe. Note the negative divergence in ES that builds right in to the initial pop in ES after the LTRO results were announced, the negative divergence worked perfectly as the pop in ES was promptly faded and we had downside confirmation. Fast forward to the present...


At the left is the 5:30 mark at the red arrow, the highs for ES, note the green downside confirmation and then early pre-market we had a positive divergence (first small white arrow) that sent ES a bit higher which was also confirmed with 3C making higher highs with prie, then a small negative divergence at the second red arrow to the right, that sent ES lower in to the New York 9:30 open, off the regular hours lows, we have another small positive divergence in place, as I mentioned, the early trade is not a reliable indicator as most retail traders who had to go to work likely put in buy orders after seeing yesterday's strength and also accompanying sell stops which we likely hit on the early downside move-so easy as that, fill the order and stop it out, the middle men make decent money this way through the bid/ask, through fading the retail trades and through volume rebates.