Tuesday, August 21, 2012

Rejected above Bollinger

We have a long wick on ES today. The price went above the bollinger but was rejected and closed in Red.

I show previous examples in red where the market went down quite a few handles after a long wick to the upside. We also have a crossover of the Stochastics lending to bearish possibilities. All we need a confirmation of a lower low.

There is one example, in blue, where the market should have turned down but there was no confirmation with a lower low. Right now, ES seems to have double bottomed at around 1408. If the tape breaks below today's low, we have a good chance for more downside.

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