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ES head and shoulders pattern played out this week, but no higher timeframe closes above 5310. Spotting these Wyckoff cycles in real time is difficult but this looks like a distribution pattern to me. Delicate spot though, goes back to data. Core PCE is Friday (Fed’s preferred gauge for inflation). A hotter reading could be a rug pull. Also because of how extended we are, an inline reading could also see us lower. In this event I’ll be watching $XLE long next week. A cooler than expected reading would be ideal for continuation higher & another confirmation of the rotation trade out of tech & into value. In this event I’ll be watching $IWM long next week. submitted by /u/Market_Mages to r/Market_Mages |