My longer term work has consistently led me to a bullish conclusion.
My comments here pertain only to today, not to what I expect longer term.
The trading pattern in the ES fucutures since the close in NY yesterday is odd looking relative to recent weeks, and recent weeks have been odd looking. Make that recent months. The Fed has distorted the playing field.
The overnight gaps have been legendary. The legendary has become ordinary. If you’re not hedged by trading the fucutures 24 hours a day you are guaranteed an ugly surprise a couple of mornings every week when you get up and look at your screen for the first time at 6:30 AM.
What a goddamn mess.
But last night, they went sidewasyf ro a change, at least until 3 AM ET. Now, in the last hour, they’ve perked up and the oscillators are looking more and more bullish. If there’s no reversal in the next few hours, we’re going to be looking at another absurd gap when NY opens.
At the moment, I have no projections on the 5 day cycle. The 2-3 day cycle projects to 3590-3600. We also have a small reverse head and shoulders breakout patter here, that measures to 3610. Resistance is projected 3586-3610.
So, unless this morning’s little breakout fails immediately by dropping well below 3560, I’m expecting to see that round number again, plus some extra.
Oscillators are bullish on both the 60 minute and 30 minute bars.
Click to enlarge.
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