Here’s that beautiful 2 hour bar chart again. It sure looks like it’s trying to bottom here, if you look at where it is, and the behavior of the lower indicators. In addition, the 5 day cycle projection of 3218 was hit. But I would have expected more of a V. Instead, it’s just lying there. Cue Jaws theme.
On the hourly bars, the indicators have turned, saying that the bottom is in. But not saying what shape the up phase takes. Sideways would be bearish. Bulls need it to clear 3240. Otherwise, they got nuttin! NUTTIN’ I tell ya!
On the 30 minute bars, the indicators look bullish with the ES forming a double bottom. But again, they need to break that downtrend. The number to beat on this chart is 3232. That should be enough to confirm a stronger 5 day cycle up phase and perhaps more. But if they don’t break 3232, then they go at least to the trend support line at 3195, or worse.
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Catch up with the short term to longer term outlook, and chart picks for playing both sides of the game in my weekly Technical Trader reports. Here’s the latest:
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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