ES Update

ES is confirming the mild strength in the market averages that I believe is tied to a upside false breakout move that will be our trigger for a downside market reversal-I know there are a lot of seeming contradictions in all of that, but AAPL's intraday head fake which was small chows you what the purpose of a head fake move is and a larger head fake move will have more dire consequences and give the market the extra fuel it needs to push the market lower. The GLD head fake too out over a month of longs in 1 day!

These are just ES 1 min charts, later in tonight' wrap I'll show you the more important longer term charts for ES.

 As the market opened at 9:30 (ES or S&P E-mini futures trade 24 hours a day during the trading week) where the chart is a darker background shade, 3C was very negative on the open and sent the market lower, since there have been some minor positive divergences just as we saw in the market averages in the last "Market Update" so we have confirmation in ES too.

This is a closer view of today's intraday ES trade and you can see 2 relative positive divergences and 1 leading, this should lead the market and ES higher, probably in to the close and help set up the head fake breakout move we are looking for which should signal the real reversal in the market. Yes, we are looking for what appears to be strength in price to signal a break down in the market!