A sell signal has fired in the daily chart of the E-Mini S&P 500 futures contract (ES..), which forecasts a potential decline and a change in trend. Let’s take a look..
PEMA Crossover Sell Signal
The PEMA Crossover system has fired a sell signal in the daily chart of the ES. This system is explained (and the code exposed) in my FREE eBook Profiting with Pivot-Based Moving Averages.
This signal doesn’t fire often in a daily timeframe, but you can see that two of the last three signals that fired offered excellent moves in this contract.
The fact that this sell signal has fired during a potential “lower high” formation after dropping from major resistance at 1,130 is significant. Also, this signal could precede a potential test at the bottom of a developing ascending triangle. A breakout from this triangle could spark the next major trending move.
The 13- and 55-period pivot-based EMA’s are also serving as resistance at the important psychological level of 1,100, which cannot be overlooked.
In order to confirm this signal, we must see price close below the low of yesterday’s price action at 1,074.50. If this occurs, a clear downtrend could arise.
Let’s see what happens!
Cheers!
Frank Ochoa
PivotBoss.com
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