ES Update

 After a premarket negative divergence at the highs ES with most of the market pulled back in morning trade, I've already received a couple of emails from people who track trader action and sentiment, one of my better sources sent me this:

"I'm following a bunch of traders on twitter, they were short into EOD

yesterday stopped out this morning on the gap up, they went long and now got stopped out on the long.  Now they are switching short again. Guess this is how wall street makes good money and when the bounce comes I think it's going to really catch the shorts off guard since this is bearish price action and honestly I would have gone fully short if it wasn't for 3c."


As explained yesterday, a short squeeze would be a key component in to any bounce and as I always remind you, "Price is deceiving".  This kind of reaction to the market is EXACTLY why we don't chase trades, but let them come to us.

The CONTEXT ES model is very supportive of higher prices and growing, I'm very interested to see what our "Risk Asset Layout" which is a more detailed form of CONTEXT has to say and where the underlying strength is coming from that is apparent in the CONTEXT MODEL. I'm going to take a quick look.