The bulls still have running room. The 5 day cycle projection on the 24 hour ES S&P fuguetures hourly chart is now 3980-3990. But there appears to also be significant resistance at 3955. We’ll have to wait and see if they clear that. If they do, the drive to 3985 will be on. At that point the round number magnet comes into play.
Even if they stumble at 3955, they would still need to take out 3920 and 3890 to get anything going on the downside. The odds of that happening today are low.
I’ll start with the 2 hour bar chart for perspective.
The base breakout has a conventional measured move target of 3980, matching the 5 day cycle projection.
Here’s the hourly bars look.
Follow how pre-determined and known liquidity flows drive stock and bond prices here . I will show you and tell you exactly how the major forces of macro liquidity move not just the bond market, but stocks as well. Liquidity analysis sets the context for technical analysis. It helps us to narrow the focus of our chart reading to the outcomes that are most likely, given the circumstances.
To better understand the big picture right now so that you can take the correct action when the time is right, check out the following:
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