On Monday, I highlighted the 4 Close Reversal shown in the ES market. I noted that a close below this level might signal lower prices.
Market showed follow through down on Tuesday.
Wednesday showed a pullback right to the 4 CL Rev level.
Today, the market has shown another potential reversal via a Two Bar Flip Flop (another favorite pattern of trading master, John R. Hill).
This is signaled by a complete reversal of yesterday’s upmove and a move to new lows. If short, stop-loss could be moved down to just above Wednesday’s high. Is this a crash in the making? I don’t think so. The long-term trend lines are still holding.
Lundy S. Hill