4:20 AM ET – The chart pattern on the ES over the past two days is unintelligble gibberish. The November uptrend is broken, but a downtrend hasn’t been established. Instead the past two days have seen a messy, tight trending range of mini-cycles lasting less than a day. Great for trading 1 minute bars and not much more.
But here’s the thing.
It’s still bullish. This little trading range has an upslope, and the hourly oscillators are still bullish, with an upturn from a higher low here in the wee hours.
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There are no projections on the 2-3 day or 5 day cycles yet, but the 30 minute bar chart suggests that they’re taking aim on resistance at 3585.
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Zooming out with 2 hour bars, you can see that bears need to see 3540 broken before thinking that this pattern is a top, as a opposed to a consolidation, with dealers in accumulation mode preparing for another markup orgy. Click to enlarge.
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