Last week a mechanical sign of weakness was triggered on Wednesday, as previously described (see comments on chart).
Aggressive Selling (red) was also marked on Wednesday and ES declined to test the major control at 4689.0. I wrote pre-RTH on Friday that “Time printed below that level would be a further indication of weakness and suggest lower”.
Friday’s Value Area was generated below 4689.0 and therefore ES finished the week in a weak position. Today there’s been further selling with ES printing as low as 4633 at time of writing.
As I also wrote on Friday “I’m cautious here. Bulls would want to see 4689 quickly recovered”.
