As expected, ES pulled back on Sunday night, and the market gapped down in the morning and then reached a higher high. The pattern looks like a rising wedge or an ascending channel. The MACD and RSI show the same pattern of the negative divergence as previous two peaks. During the last 15 minutes, the sellers kicked in and the volume spiked. Hopefully ES can pull back to 830 or lower before the next rally.
XLF is continuously rising like a rocket. The runaway gap will not likely be filled at any time soon. SKF is at all-time low now. After the breakout on last Thursday, RKH (bank regional holders ETF) is overbought while the trend is still up.
The intermediate term trend is still up however the market is getting overbought. In the near term, a healthy pullback is also needed for further rally to 950+.
Put/call ratios are extremely low today, which is bearish in the short term.
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