Here’s what’s scary about the hourly chart of the ES- the S&P fucutures. The 5 day cycle has been in a down phase since the Wednesday-Thursday overnight session. The December 9 high is cleared, and short term resistance seems set at 3717. If they go through that, this thing could go explosively higher.
If they don’t, then I’d watch that rising trend support now at 3710 and 3705. Odds are that if those aren’t broken, the upside breakout will come this afternoon.
People get all hung up on valuations and the Fed, and the outrageousness of a completely rigged market. But the fact is that if you simply do the most basic technical analysis, i.e. support and resistance levels, and trendlines, you make money. Rule Number Two is always true. The trend is your friend. Don’t fight the tape.
And Rule Number One goes without saying. Don’t fight the Fed.
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