I do three types of setups, pullbacks, pm bo's from certain types of formations, and double tops and bottoms. I wasnt talking about the pullback as I dont like a pullback after a volume spike like that one and even if I had the spread wasnt big enough to mess with. After a spike like that one you are thinking reversal. The only reason I commented was that it was such a huge divergence you would have to be blind to have missed it.
I was thinking a lot about a pullback one hour later - around 12.30 - when I read your post, so I wasn´t refering to the situation you commented at all, just my mind drifting, never mind...
No harm in asking questions. When you learn to trust those ma's like I do they will keep you out of a lot of iffy trades. If they fail to support or resist a pullback, beware. Rule #478 subsection A
IMO, confidence in MA's is ALL one needs to make a good living from the intraday markets (with conservative money management, of course). It is quite surprising to me how most on this site - especially newbies - are so quick in rejecting MA's as 'lagging'.
Thought I would throw this in there for stalker. Here we have a pullback from the hod to the 20ema, true, BUT: the thing to keep in mind about good pullbacks is that they are reluctant. They pull back grudgingly. They dont fall out of bed. This may move up but I didnt take it.
I see what you mean. There was also a similar divergence price-volume as yesterday (no spike though). I also noticed Ym refused to make new highs a couple of times while ES did it. Ym also didn´t make it to yesterdays high. I´m still crappy at analysing the relationship es-ym, I just try to watch it.
I dont try to use YM as a leading indicator for ES. It may be so on a micro level but on the 5 minute chart I just dont see it. What I look for is just what you mentioned. Are they confirming one another? If they are not in synch this is a warning to me to be very cautious.
Why THOSE twenty? Why not the largest cap 20 in the S&P500? Or the largest volume 20? Or 20 picked with blind dart throws? Or the 20 most relevant to today's economy? Or the 20 with the hottest growth? YM? Pure superstition!