ES Update

I'm just using ES as an example to carry on the recent examples I've been trying to convey with regard to corrections (the difference between pullbacks and consolidations). Both a pullback (price) and a consolidation (time) essentially do the same thing, work off overbought conditions, but sometimes the actual manner in which a market corrects can give you clues or tactical entries/exits.

I mentioned earlier I was distrustful of the early parabolic move and expected some correction.

ES consolidating...
First of interest is the positive divergence in to the open before the market and Euro took off at 9:30, now we have an intraday 1 min leading negative divergence. What I wanted to point out is that this doesn't always mean a pullback, a lateral consolidation through time has the same effect. There's no guarantee we won't see a pullback in price, but thus far it's pretty much lateral which may be a good thing if the market moves to squeeze recent shorts.