I’m looking for some downside on ES. Ideally looking for shorts to setup within the context and framework of the models I use to engage with price. The first target and thesis I have provided below.
Divergence at the highs leading into a new month. Of course this is a counter tide trade where by ultimately NQ is lagging ES and YM so the safer bet is always to predict NQ is to re-align and thus trader higher. But for now I like the Risk:Reward in speculating from a technical perspective a move lower is on the table for ES.
Area to trade through is the Green zone highlighted where I would not be surprised to see it respected for a short period of time and where buys will seek to try regain September open just above.
See the following link for a better for view of my analysis idea.
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