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Emini

ES Stuck in a Box 7/14/2020This is the ES at the 4 hour view. Banks earnings were today - especially JP Morgan and Wells Fargo. Why did the ES rally? FOMO bears. Everyone was expecting bank earnings to be bad. So, if everyone is already bearish , they already have short positions in anticipation of bank earnings . ES' projected supports were near the VPOC around 3115 or the flag support around 3045. It turns out to be the VPOC support. Bears who FOMOed got their shorts eaten from that bounce. Shorts were covering like crazy in both financials and tech. Eager bears are constantly hoping for the big tech crash and shorted either too early or too late. They got punished for being too greedy. ES is stuck in a trading range. Why? The ES will not fall until the NQ or FATMANG ( Facebook , Amazon, Tesla , Microsoft , Apple , Netflix , Google ) stocks fall too. Currently, Tesla , Amazon, and Netflix love their short coverings. At the same time ES would not sustain a rally unless the financial and transportation sectors rally too. In every economy, businesses need bank accounts and ways to ship/receive products. That's why those two sectors are so important. The ES and RTY's fates rely heavily on the XLF /FAS and XTN / IYT doing well. Currently, people view big tech as their "safe haven."
CME_MINI:ES1!
by Itsallsotiresome