ES Weekly Analysis (Buy with Caution)
The current market conditions is giving me cause to pause as it relates to putting in buy orders. To me it seems as if the market is poised for a steep correction over the next week or so. My current thesis is based on the fact that the ES-Mini for the better part of this week was priced well above the weekly 3 ATR. What was particularly alarming for me was that nearly every time we have that type of run to those prices we've seen a steep pull back in the coming weeks. Currently I have a "No Buy Zone" of any contracts priced above 4400 all the way up to 4504 (also want to note that for the better part of this week my "No Buy Zone" ranged from 4380-4453). In my view we are seeing buyers like myself shy away from those higher priced contracts in fear of having the algos pulling the carpet on us for 100-130 points.
The daily chart also is resonating the weekly sentiment in that we are seeing a decline in V-Score which is indicative of buyer exhaustion. (See Chart link for more details)
https://www.tradingview.com/x/MYDPMs9c/
Even more alarming is the weekly VIX chart which illustrates that the VIX is currently in a squeeze which could spell trouble for buyers if they get caught reaching for expensive contracts in the "No Buy Zone." (See Chart link for more details)
https://www.tradingview.com/x/ky4rRFg1/
(Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.)
The daily chart also is resonating the weekly sentiment in that we are seeing a decline in V-Score which is indicative of buyer exhaustion. (See Chart link for more details)
https://www.tradingview.com/x/MYDPMs9c/
Even more alarming is the weekly VIX chart which illustrates that the VIX is currently in a squeeze which could spell trouble for buyers if they get caught reaching for expensive contracts in the "No Buy Zone." (See Chart link for more details)
https://www.tradingview.com/x/ky4rRFg1/
(Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.