This is a syndicated repost courtesy of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Reposted with permission.
Here in Europe when the business day started around 8 AM (2 AM NY) somebody dropped a big turd. The ES fell through support to the next support area around 3640. That’s the bottom of the current effective downtrend channel.
The 5 day cycle projection is 3617. Hourly indicators are mixed and in a postive divergence. That suggests that the 5 day cycle projection might not be seen. It will depend on whether the big uptrend support line now at 3637 breaks down. If it doesn’t, and those hourly indicators turn up before making new lows, I’d expect yet another rally.
Conversely, if 3637 doesn’t hold, then 3617 would be the next target.
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