Divergence Trade using CMI 5m

December 15, 2009 · Posted in CMI · Comments Off on Divergence Trade using CMI 5m 

@ES opened near Previous day’s Low 1104 and traded side-ways in the first half hour. Around 10am, ES brokeout the trading range from 1104-1106 and traded higher. By 11am, ES traded near Value Area High (1109) and Point Of Control (1108.75) cluster. CMI (Combined Market Internals) were showing the Internal weakness as CMI made a lower-high when ES reached to POC/VAH cluster signaling a potential divergence. CMI post red-bars until 2pm as the divergence resulted in price trade from 1109.25 to 1104. CMI5Divergence_Dec15098

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Globex Pivots
Floor Trading Pivots