Sending out update a little earlier today given price has done essentially nothing for 3 days. While many were looking big up moves or down moves, ES has done neither: Its chopped up and down in an ever tightening range as it coils for its next move. As posted yesterday: “We’re in a consolidating market and its shape favors the bears until proven otherwise. It could definitely bounce up and down more in this range for a day or two so would be looking at the bullet points above for clues” and this remains true.
ES has done the same thing on repeat: Spike above 4400, test the 200dma, trap bulls thinking the bottom is, selloff, drop below 4320, trap bears thinking the top is in, and repeat. There is a quite obvious pattern forming here though. Here’s what I’m looking for