A Clear Anomaly On The Daily S&P 500 Futures Chart
Anna Coulling | Apr 01, 2020 07:05AM ET
We had a clear anomaly on the daily chart for the ES Emini and which sent a strong signal of weakness ahead and is now developing as the trading session develops. The candle of Monday was wide and up, yet look at the volume. It is average and given this was a dramatic move higher, Wyckoff’s third law applies. Effort and result are in disagreement. On such a move we would expect to see higher volume as we have seen on previous days in the current climate.
Yesterday’s price action confirmed this weakness with higher volume, but a narrow spread candle, with the index duly rolling over this morning as the VIX climbs to 58.50, up five points from yesterday. Finally, we also have resistance building in the 2640 area and confirming my analysis of a few days ago that this rally is developing as a short squeeze and is not a primary reversal in trend.
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