ES Update

Last time we looked at ES it was trending down with a positive divergence. While a positive divergence on a 1 min chart can sometimes create a consolidation (ending the preceding trend for a while), it is more common for them to build in to larger divergences and change the preceding trend. I felt like ES would most probably build a larger divergence before anything interesting happens. Take a look at ES now...

The initial positive divergence halted the downtrend and now we have a somewhat lateral trend developing. Most positive divergences are created as price moves lower or laterally in a range, we'll have to keep an eye on ES, a leading positive divergence would certainly be interesting and suggest a trend change to up is nearby, remember also many of the short term market averages were showing similar 1 min positive divergences in an earlier market update.