ES in a Bear Flag

ES pulled back today. Why? RSI was overbought at the 4 hour view. Put/Call Ratio was at 0.67 before the pullback. Below 0.75 is considered overbought or a bit extreme.

You know what's the crazier part? TVIX was delisted on July 12th. I guess Credit Suisse knew...

ES is in a bear flag right now. ES and RTY's fate rests in the XLF and XTN/IYT. If financials and transportation do not rally, then there will be no bull market.

Banks earnings are tomorrow. The ES is in a bear flag at the hourly now. That pink line is a historical resistance. My guess is that the ES will find support at 3115 (near VPOC) and then around 3040 at flag support. They'll probably blame bank earnings for the second leg down.

One of my mentors once said this. News breaks into the market cycle and not the other way around. Most news stories are just the cover ups or excuses by lazy, economically illiterate journalists. If you read the market cycles and the price action, then you can read the markets. Most news stories are just a costly distractions and a waste of precious time.