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4:37 AM ET Will today be a Day of Infamy in the market? When Europe opened, it walked away from Friday’s gains in New York and went right back to where it left off trading the ES fucutures when Europe’s trading day ended. Apparently, they don’t think too much of the US market. Or maybe they just don’t think that 3700 is such a lucky number.
But it’s only 4:20 in the morning in New York, so this doesn’t mean much, if anything. So far, it’s just a pullback to the trendline at 3672, followed by a slight bounce.
There’s a 2-3 day cycle projection of 3670. There’s also a price objective at that level from the breakdown of the nice little head and shoulders top that formed between Friday afternoon and the wee hours this morning.
Hourly indicators are on the sell side, so there should be another test if not a trend break, and continued pullback to the next support level at 3668 or 3658. Momentum is slightly negative, and the two cycle oscillators based on MACD and True Strength Index are both still above zero, which means that the larger uptrend remains in force for now.
30 minute indicators have pulled back to the level where the market bottomed on a similar looking pullback on December 1.
If this holds, look for another big rally later today. If they break it, I would guess that we’d get a trading range between the 3660 and 3690 areas for a little while.
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Confuse Us Say: When River Flow Uphill, Bear Must Float
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