In the afternoon session, as the ES Futures was making a new high at the close of the Energy Pits, the 15 SPDR Stock Stochastic (based on a 6.5 hour analysis) was making a lower high.
The $TICK Pivot 6 period EMA was also making a lower high. However, notice that the late down trend in the ES Futures was occurring on increasing buying volume in the equity market. In the overnight market, the ES Futures did not crash, but stayed near close of Thursday.
I'm not one to enter at tops and bottoms. I prefer to see price confirmation of trend change by seeing a higher pivot high or lower pivot low, and then wait for a corrective or reactive move before entering. The ES Futures confirmed a trend change by making a new pivot low at 1438 ET, and completed a 50% reaction at 1450 ET just before the bond market close. This is my preferred entry point.
I use the indicators to indicate a change in trend sentiment, but wait for price confirmation - a personal preference.
Charles
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