Yesterday the Wall Street Journal ran an article saying the quantitative easing the Fed is expected to announce Nov. 3 will be smaller than expected. The market reacted negatively amd sold off sharply. But in the afternoon the usual market rebound sent the price close to the intraday high for the close..
ES is not quite ready to reverse completely. The election is a few days away and the QE2 announcement is expected near the end of next week. Many investors will still want to stay on board in hope of a pleasant surprise.
ES is dealing with 9-day moving average line (9ema) day by day. It is chipping away the strength of the 9ema line. As soon as the time is right, the price should reverse down toward the 1145-35 range.
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ESZ0 Daily chart
ESZ0 Intraday chart – 60-minute bars
