ES Update

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That is what I have been looking for…

S&T is now showing a new tighter trading range between 1198.50 and 1111.25

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That new S&T range is coming into line with the VST trendline support and resistance, shown as dark gray trendlines on the hourly chart above. A breakout through one side or the other of that contracting triangle is what I am awaiting for direction clues from within this consolidation zone that has formed since the spotter signal on 8/9 at 1077.

The opposing forces are allied…

On one side we have three major timeframes that are all bearish underneath 1200, and on the other we have a confirmed bottom spotter and eleven days of consolidation above that line trying to withstand the crushing pressure of the bear.

As I mentioned in a previous post, in order to build a reversal structure after all the damage from the initial break into a macro bear market– we would need to see a sideways market that created a structural pivot and a smaller range, and that has now happened. We also must see that spotter low defended, and that remains to be seen.

How this small range ultimately resolves between 1111.25 and 1198.50 should provide the next clue for a trending move away from this sideways consolidation. Under 1111 and the bears are back in total command, but above 1199 would put bulls on the trend offensive, with the contracting triangle providing preliminary VST signals.

ES 1159.25 continues to be the ST bull/bear line–trending fully-bearish below, but switching to short-term CT bullish on a move above.

…my .02