Note how we've been trading in a range in ES (top chart), oscillating above and below the 994 level that represents the high from 7/30 and the high from the prior multiday range. While the weak dollar and rising commodities, as well as rising yields, are supporting stocks, we're seeing profit taking across a number of sectors and non-confirmations of the morning high prices from NQ (bottom chart) and the Russell 2000 Index.
If you think about it, most range markets involve cross-currents: some sectors and themes lean one way, others give a different picture. One of the best ways to trade those cross-currents is to simply observe them and not make large bets until you achieve clarity regarding day structure and how that fits into the market's larger picture.
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