Emini S&P 500 Is Stuck At VWAP
Trader Moe | Sep 29, 2016 09:42AM ET
ES is Again Stuck at the Silver Megaphone VWAP
Once again, the emini is stuck at the silver megaphone VWAP. It’s trying to work its way back to 2184 to fail at another breakout attempt through that level before a collapse back to the bottom of the megaphone and one last attempt to break out upwards.
Here’s a closeup on the 5-minute chart of the falling megaphone off last Thursday’s high, the Sornette formation ES broke out of, the pop after, and an attempt to set up a price channel or rising megaphone now to work the price back up to 2184.
ES is Trying to Set Up a Price Channel or Rising Megaphone (Red) on the 5-Minute Chart
But ES has retraced enough of the navy blue falling megaphone to just poop out here and retest Tuesday’s low (pink scenario). In that case, a triangle or megaphone could be forming across the silver megaphone VWAP before a breakout downwards from the megaphone.
A genuine upwards breakout through 2184 would be a breakout into a melt-up set-up that could go hundreds of points. A breakdown through 2080 would be a set-up for a crash to roughly the January/February lows.
ES is doing everything it can to avoid making that decision.
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