06-JUN-2016 | ES - Short [S&P 500]

1)  In this morning's example of a Head & Shoulders pattern using a 4 tick range bar in the forward e-Mini S&P 500 electronic futures contract, the ES had been in an uptrend since Monday June 6th 7:50 pm. ET.
There was a pull back in the uptrend from 11:39 am ET to 12:55 pm ET.

2)  The left shoulder with a left strength of at least 5, occurred at about 12:51 pm ET .  The Head occurs at 12:55 pm ET . Immediately after the head we have multiple indications of that infer that price will continue to rise. We have a +1 Standard Deviation Tick ratio followed by a long Strong Tape Imbalance order flow event and a High Frequency Trading Buy Surge Order Flow event. During that time we also have a reversal in macDaddy Followed by steady Green indications in MacDaddy. We also have a reversal in WIND and Wind settles at Steady Green. We are now looking for a right shoulder with a left strength of at least 5 and tape in order to enter the trend.

3)  A right shoulder with a left strength of at 6 occurs at 1:31 pm. ET. Our Right shoulder occurs concomitantly with a +2 Standard Deviation Volume Ratio, a +2 Standard Deviation Number of Trades Ratio, a High Frequency trading Buy Surge order flow event and a Long Strong Tape Imbalance order flow event. These indications occur while WIND is Strong Green and MacDaddy Institutional is Bullish Vs. MacDaddy Retail.

4)  As the move continues, we receive a plethora of indications on the tape that continue to infer the continuation of the upmove. we have 5 +1 Standard deviation Uptick Ratios, 2 High Frequency Trading Buy Surge Order Flow events and a Long Reversal in Equities - High Frequency Trading. MacDaddy is Strong Green During the move and it also portrays a resumption spike followed by Higher Highs. WIND continues to howl in at Strong Green.

06.06.16 2nd right shoulder

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