/ES sketching

The chart below reveals the potential domino effect of multiple technical signals getting tripped. First the divereged bearish RSI suggest the low (blue dashed line) should get broken by at least one tick. However to get there we must fall out of a rising wedge pattern which is an even bigger bearish signal.



I'm keeping this scenario in the back of my mind as we continue to press higher. I often times sketch "what if" situations, stepping back, looking for symmetry and balance, pushing and dragging daily bars around until things look proportional. This is the best fit I can find assuming a worse case scenario where a massive short squeeze in an illiquid market rockets us up into the 200 mva in just a few days.. it's what kept me from going short today. The intra day RSI flashed a sell signal but on a daily basis, both 9 and 14 day RSI simply looks over bought with no signs of weakening. On the weekly basis the bullish diverged RSI still suggest 943ish should get bested.