The ES futures are gyrating wildly between the 2 day cycle inner channel lines (red lines), interrupted by news noise bombs. The lower support line now at 1251 has just been slightly broken as I write this. The upper resistance line is around 1274. The centerline around which price has been gyrating is now around 1263. The 2 day and 5 day cycle channels overall are in a very shallow uptrend. Neither cycle is cycling at their nominal rates. The 2 day cycle has been running shorter at about a day to a day and a half. The 5 day cycle (blue channel) has been trending.
2 day cycle oscillators are on the sell side, portending a down morning with the cash market opening around 1250-55. the 5 day cycle oscillator has been in a gentle decline, while price has been uptrending. The loss of momentum is normally a sign of distribution. That indicator has just edged to the sell side. The 5 day cycle inner channel line now at 1247 is key support. Given the downturns in the oscillators, that seems unlikely to hold. The 2 day cycle channel appears to be just now turning down, with the outer support band at 1237-42, and the outer 5 day cycle band at 1229 the possible targets for this move.
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Gold may be leading the way down, already hitting the 2 day cycle outer bank, and piercing the 5 day cycle inner channel line. If that area gives way, the next target could be the 5 day cycle outer band around 1695. If they hold, the 5 day cycle centerline around 1737 may be the upside target.
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