While I think that yesterday was a warning shot across the bow, I’m voting twice in favor of it being yet another BTFD moment. I’ll take a deeper look at the big picture in this weekend’s Technical Trader, which you can try risk free for 90 days if you are not now nor have ever been a member of our party.
Meanwhile, here’s the hourly chart view. First of note is that as usual they bought the double bottom last night and rallied 42 points from there, but only to uptrend line resistance. Those lines are around 3475 at 5 AM ET. If they manage to clear those, the next target would be the newly established downtrend channel line currently at 3500, descending to around 3465 as of the NY close at 4 PM ET.
It’s too soon for a 2-3 day or 5 day cycle projection.
To keep things in perspective, here’s the daily. A pullback to as low as 3375 or so would still be a normal pullback to a breakout point from a bullish perspective. To change that, the decline would need to break down below that area, where the February top was on the ES.
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Meanwhile, get cycle projections from 2 weeks to 2 years, along with key support and resistance trends and levels, and long and short stock trading ideas at Lee Adler’s Technical Trader. Here’s the latest report.
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