I thought I’d take a step back and just look at the current phase of the rally on an hourly chart. Bull or bear, as a chartist, it’s hard not to admire this.
It does not appear to be ready to quit yet. The projectile vomit of the fire breathing dinosaur, whose front half we see at the bottom of the chart, is still rising.
That despite the fact that this morning the market appears to be in a 5 day and 2-3 day cycle down phases that’s flat. It has reached the lower line of an accelerating inner channel. and appears poised to launch from there.
The lower line of that channel is at 4056 in the 6 AM hour in New Yawk. That line rises to around 4063 at the market open. So if they hold the ES fucutures above that line, prepare for launch to starbase 4100.
If they break that line with a downward stab, the larger channel support line comes into play this hour around 4045. And that’s where the decision on up or down will be made. If it holds, I would still expect a run to new highs, just a bit slower than if the inner channel holds, obviously.
Can you imagine! Talking about 4045 as support! Or “sport” as the case may be.
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This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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