ES Tags Critical Decision Point
Trader Moe | Jul 30, 2015 01:12AM ET
ES has Reached its Critical Decision Point at the Orange Megaphone VWAP
ES has reached its critical decision point at VWAP of its orange topping megaphone.
It could form a continuation pattern here and just keep moving up to the megaphone top. Or it could form a topping pattern here and break out downwards to retest the neckline of its inverse H&S (plus megaphone VWAP) at roughly 2074. A reversal at 2074 would put a rising megaphone on the short-term chart.
Or ES could keep moving down through 2074 to take out the bottom of the inverse H&S and tag the bottom of its 3-year+ price channel.
The ARCA:SPY put-call ratio was very low at 1.39 yesterday, so there probably aren’t a lot more easy shorts to squeeze.
Normally, a reversal here to tag the 3-year+ price channel bottom would be the favorite scenario, but you’ve seen the recent melt-ups, so be sure to stay on your toes.
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