After a small pullback, ES quickly found its support yesterday and moved back up to close near the high. ES has now been up 9 of 11 days. Triple witch expiration Thursday night-Friday morning may hold ES up for an extra a day or two. During this time we may see an attempt to breakout to follow the Nasdaq market, which broke its August high yesterday.
So far ES and YM have not broken their August highs. If both try to catch up with Nasdaq today or tomorrow, the breakout could occur and squeeze price higher even though right now all three markets are in extremely overbought territory.
On the other hand, there were some small signs of a price exhaustion move during regular trading hours yesterday and $VIX has given the first very early stage selling sign. If both ES and YM fail to breakout August’s high, but instead move below yesterday’s low, then a move to fill the downside gaps should be expected. ES may still want to stay inside its consolidation range
ESZ0 Daily chart
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