Difficult to make any sense of where we're headed except the obvious- leaping up and sliding back.I do see divergence and the "W" bottom formation coming into play today. That "W" could take us into the 8K region.
ES Vol Chart. Seems to be a lot of peak vol. blow of bottoms recently. Looking closely on the 1 min, they are divergent too.
A Blow off Bottom is a larger than normal peak in volume. In most cases, it will be well above the volume trend line. In this case, the slope was at 6K, and the peak was well above 8K- +40% odd... 3 ticks later the volume has dropped to 2K-60% down, but the price has gone lower. If the lower price is "vailid" or going to be a continuation, we would expect to see an increase in volume. If this trend was to continue going down , we would expect to see a volume of 7K ish.
I trade cci trend line breaks and I prefer the break to occur around the zero area and preferably with some divergence.
If you look at the first major low at 7650 you'll see a cci trendline break (you have to imagine the line) and regular divergence all helping to give a high probability long trade. The cross over the zero happened a bit later to give confirmation.
Another method is zero line rejection and you'll see that the subsequent pulllback caused the cci to pullback also to the zero line and then reject it. So providing an opportunity to add to or get long again.
Tricky trading during the mid session with volume almost non-existant.The early and late sessions had a lot of points for the taking, especially the late session, trading the 100MA break. Almost 20 points on offer ! When was the last time we saw that?
Moving on up now, and an established up trend is in force, producing an interesting bull triangle formation that should lead to an interesting week next week.We may just get a breakout tomorrow....The target would be 8100 ish.Support 7832, resistance 7932.
Just a reminder about the 100MA , using it as support/resistance and confiirmation of direction change. You will normally get two opportunities to exit a trade at or near a top, sometimes three. You will also get at least two opportunities to enter a short from a pullback to the 100MA as confirmation of direction change.