The ES fuctures are up 22 points from their overnight low here at 5:25 AM ET, but that’s still down 46 from Friday’s close. It ran into multiple support lines and levels and blew away a 5 day cycle projection of 3260 at the low of 3248. The hourly indicators suggest that the market may be bottoming here. There’s no confirmation of that yet. It now must clear 3290 or so to prove a reversal.
Here’s how it looks zoomed in on 30 minute bars. A 2-3 day cycle projection of 3250 was hit. 30 minute indicators are also in position for a bottom, but are not confirming. When NY traders wake up and start getting to their screens around 6 AM they need to push above 3280 to get a turn confirmed on the 2-3 day cycle. That should be enough to turn the 5 day cycle as well.
Ooops. They’re weakening again and there are no positivie divergences yet to suggest that this will be the low.
Stay tuned.
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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.
An important low is due right now but bears have a chance to break the market. This report shows you the setup and gives you picks to play both ways. Current long/short swing trade chart picks are up 6.9% (100% cash basis) on average, with an average holding period of 3 weeks. This week I added 3 short and 3 long picks. That leaves the list with 6 shorts and 10 longs.
Technical Trader subscribers, click here to download the report.
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