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It took me by surprise, I must say, when I found out yesterday, oh yeah, I heard it through the grapevine, that the market hit a landmine.
But the futures bounced and then made a higher low in the wee hours. Hourly indicators are on the buy side, and the 5 day cycle projection of 3655-60 was reached. So was that the bottom?
Hard to say. At 6 AM in New York the ES futures were pushing against downtrend resistance at 3678, and there’s more at 3685. If they clear those, then we should see a go at 3695-3700 over the following hours. Failing that, then we should go back to test the low of 3659.62. If they stay above that, then the low is probably in short term. But a weak bounce sould then suggest a weak right shoulder on the hourly chart, with a nice breakdown over the next couple of sessions.
So let’s see what today brings.
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For the big picture technically.
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