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Last night’s blog post outlined a potential scenario for trading the stock index futures, and in particular the ES. No trade suggested was triggered on Wednesday but the scenario is even more compelling as we head into the Thursday trade.

The TF is trading into new high ground in the night session unaccompanied by the other indices. Something very soon will have to give; The TF is going to reverse very sharply and the other indices will begin to accelerate lower, or the other indices will begin a sharp rally to join the TF.

A close below the levels highlighted in the charts below is an initial intermediate term sell signal in the indices.