The ES has been in a multi-day ascending wedge for the past 6 trading days. Ascending wedge end in two ways.
1) Blow off top pattern - The price can skyrocket temporarily, plateau, then fall rapidly. This is the more volatile and profitable scenario. If it chooses this direction, then you can easily scalp the rise then scalp the fall. The easier trade is to long that rise, take profit, then wait for the pullback for an epic bounce. Liquidity is still pretty high. The second option would be the smarter way of doing things.
2) Pullback - This is the more predictable, but less profitable scenario. The ES could just break out of the wedge and just do a simple pullback. Unfortunately, with high liquidity levels still going on, the pullback may also be limited again as the dip will be bought almost immediately. That would mean more flat, boring days ahead.
I hope it's the first scenario. That would get the VIX going and get the markets volatile again. Then some really good opportunities will arise from the fallout.
Data is leaning toward Blow Off Top, maybe 70/30. Lot of things coming to a head soon.
In general, I don't expect this market has much capacity to take the reasoned, 'smart' path haha. We're already well into FOMO la-la-land.
Itsallsotiresome
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@ProfitHarvest, I'm kind of expecting a blow off top pattern too. Is it THE top? I don't know and I don't care to guess at all. I'll just trade according to the current data and not fight against it. I won't be surprised that we make it above 3500 to be honest. It's the best course of action to eliminate bears first... and then the bulls.
In general, I don't expect this market has much capacity to take the reasoned, 'smart' path haha. We're already well into FOMO la-la-land.