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OK. I cheated. That’s counting the weekend. Was there an up day yesterday. Sure can’t tell that from the hourly chart. And as of 5:45 AM in New York, the price of the ES, S&P futures, has reached a critical juncture.
That juncture is the price bumping up against that downtrend channel line currently around 4458. If it doesn’t clear that, bears are likely to be in for a very good day. Bulls, not so much.
On the other hand, if they manage to clear that trendline, which will be at about 4455 at the NY open, then the bulls have a shot to make today a good day for them, bad day for bears. But they’d still face the challenge of the top of the bigger downtrend channel. That will be around 4491 at the open. It converges with a flat resistance level there as well. If it rolls over there, the shape of the pullback will suggest who wins the next round of intraday swings. For the big picture short, intermediate, and long term outlook, click here, and join, risk free.
Lest we forget, it’s that time of the month. Fed MBS settlement week coming. I’ll post an update on that at Liquidity Trader later today.
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Meanwhile, for your educational infotainment and edification: