The wave pattern has reached the classic 16th wave, so well described by TS Eliot.
In Hurstian terms we see clear on the two hour bars, the 3 day cycle which sometimes combines into a sonnet of six, but then returns to the rhythm of the night.
As to whether this wee hours holding action can amount to anything, let’s zoom in to the one hour bars on the ES S&P 24 hour fuguetures.
It would seem that unless the ES clears 4180 by the first hour of New York trading, then nothing would have happened yet. That would lead me to the conclusion that nothing will.
On the other hand two levels to watch on the downside are 4130 and 4122. If they give way, the bottom would probably drop out. It would not surprise me to see 4000 by day’s end. But lest I get carried away, I will stick to the art of centered moving average projection. That calls for 4050-60 as a low on the 5 day cycle.
And for the big picture:
- Market Outlook Going from Bad to Worse, Fast May 1, 2022
- Gold Looks Sick April 26, 2022
- Swing Trade Chart Pick Screens Flip Flop April 25, 2022
- Ugly Whipsaw Revives Crash Potential in Stocks April 25, 2022
- Tons of Cash, Not In Use, Signals this Huge Change in the Market April 23, 2022
- Primary Dealers Still Long and Wrong, But A Gift Rally Looms! April 11, 2022
- Why March Withholding Taxes Showing Red Hot Economy Is Bearish April 3, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
