That’s right, the 3 day uptrend faces another test in the early going here. During the 5 to 6 AM hour in New York, the number to watch will be 4377 on the ES, S&P futures. If that holds, then the market could be in trending mode in these very short time frames that we watch, here at the Stool. If they break that level, then the 5 day cycle should enter a corrective phase today and tomorrow.
How much correction will depend on what happens around 4362. If it holds, the down phase would play out as a consolidation leading to another up thrust. If they break that, then the next target would be 4320.
I don’t see much more than that on the downside in the near term. They came out of a very solid bottom pattern over the past month, that should strike fear in the hearts of shorts, and give the bulls false courage, every time the market sticks its head up. That means that when sport levels are tested on pullbacks, shorts will take the short gain, run for cover, and bulls will take possession for a little while.
Here’s how that looks on the 5 hour bars.
This pattern could last for a month or two. I’ll remind Liquidity Trader subscribers why, in an update to this that I will post later today. Don’t miss an issue!
Stay tuned to this station for late breaking news.
For the big picture.
- Gold Holdings Consolidated March 14, 2022
- Our Chart Picks Posted Record Gains Last Week March 13, 2022
- Weakening Cycle Patterns in Stocks Portend Worse to Come March 13, 2022
- Get Ready For Serial Market Crashes March 12, 2022
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