Friday 20 April 2012

ES - This weeks unique price action

The ES contract closed for the week at 1375.25, up 10.25 points on the week, with a weekly range of 30.75 points.  A normal sounding week, however the daily bars have produced an interesting pattern.  Below are the daily bars of the 24hr ES market.


Tuesday was a outside bar, wed was an inside bar, thurs was an outside bar and today another inside bar.  By my calculations this is the first time this has happened since the ES contract was established in 1997.  This may well turn out be be of little significance, but from my experience, when the market does things it hasn't done before (or has rarely done before)  that's an important message and a good time to play extra defensive.

All eyes on the Fed next week.

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