The ADP employment report cooled the bulls down in pre-market trading, but as soon as the regular market opened, the DOW led the way up to make new highs, notably without S&P 500 and Nasdaq following. The inter-market non-confirmation creates a divergence. If today ES still can’t breakout 1160-1062 range then it is likely time for a pullback move again.
ES stretched the price higher in the pre-market, but later never managed to move higher than the pre-market. Today is 25 days from the B lows, which equals the 25 days from the July low to A top. The time cycle also indicates that ES is near or around the Top area. Plus our CIT day is Oct 8, +/- 1 day.
The upside volume started to decrease yesterday. Internal momentum was waning while the Fed was absent. The early morning session should tell us if the Fed intnds to come back and play this week. In my opinion, as long as price doesn’t go under 1142 line, it will not scare our big friends. Only a fast hard decline will make them sleepless.
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ESZ0 Intraday chart – 60-minute bars
