ES Update

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ES has climbed more than 7% since the confirmed bottom spotter on November 16th at 1334 (adjusted for continuous contract pricing).  The short-term continues to trend bullish > 1417.75 and all primary trends are up > 1386.75

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We got the shallow pullback and tagged the lower target of 1407 that I was looking for in my last post.  The pros broke the old VST channel bottom and then immediately reversed, with an actual low of 1405.75 set on the move.  That low became the bottom of a new VST (very short-term) range to 1432.50–which was slightly exceeded this morning on another potential counter-trend stop sweep/reversal setup (this time VST) at that line.

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On the hourly bar chart above I have drawn in a shaded ideal entry zone from Stops and Targets between 1417.75 and 1426 (shown on ST tab above).  I have also drawn in a new VST trend channel using the new VST range of 1405.75 to 1432.50.  Early on, that line at 1432.50 is in play–and like 1425.50, we watch to see if sellers appear below–or if the squeeze continues toward the top of the channel and into the void above.  The top of the rising trend channel is currently at the 1440 area, and next VST resistance above is at 1445

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The range chart above shows the current trending breakout and the two stop sweep/reversal candidates; ST at 1425.50 and VST at 1432.50

Note also the narrowing of the IT range, with the bottom spotter low at 1334 now morphing into an intermediate strength move.

Let’s watch 1432.50 here to see if we get exhaustion–otherwise, the squeeze continues > 1405.75, which is the line bears would need to take out to start flipping momentum.

…my .02

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