While there was tons of intraday whipsaw today (I will discuss this more today) the daily candle for ES was quite unambiguous: A bullish hammer candle. Of course, this is not the first bullish candle we’ve seen since the late March peak, ES has put in 3 prior green candles, all of which got bulls excited then promptly failed to new lows the next day or two.
There is some reason to be optimistic about this one in terms of at least getting a more than 1 day relief rally as there is a combination of patterns in play here that typically is quite powerful on the long side. However, the big technical picture still presents challenges and importantly, if today’s reversal fails: Look out below.
I’ll discuss the pattern/setup I’m seeing here plus risks in todays newsletter