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Unintelligible Gibberish On S&P 500 (ES) Futures Chart Has Deeper Meaning 11/12/20

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.

Click to enlarge

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.

Click to enlarge


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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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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