ES has Reached its Critical Decision Point at the Orange Megaphone VWAP
ES has reached its critical decision point at VWAP of its orange topping megaphone.
It could form a continuation pattern here and just keep moving up to the megaphone top. Or it could form a topping pattern here and break out downwards to retest the neckline of its inverse H&S (plus megaphone VWAP) at roughly 2074. A reversal at 2074 would put a rising megaphone on the short-term chart.
Or ES could keep moving down through 2074 to take out the bottom of the inverse H&S and tag the bottom of its 3-year+ price channel.
The ARCA:SPY put-call ratio was very low at 1.39 yesterday, so there probably aren’t a lot more easy shorts to squeeze.
Normally, a reversal here to tag the 3-year+ price channel bottom would be the favorite scenario, but you’ve seen the recent melt-ups, so be sure to stay on your toes.