Well, my friends, our first little downtrend lasted all of two days. The ES 24 hour S&P futures have broken the line that defined the top of the channel here in the wee hours as of 5:30 AM ET, US.
They have rallied to the previously broken neckline of the beautifully formed head and shoulders top. In technical analysis such rebounds are absolutely normal. They are known as the Return to the Scene of the Crime, and do not necessarily mean that the perp will be apprehended. We’ll just have to wait and see.
As I write, they’ve just cleared that line at 3955 and are already 11 points beyond. They’re headed for the next potential trend resistance at 3980. They’ve also established a new minor uptrend channel. The top of that channel converges with a couple of resistance lines around 3980-83 in the 6-7 AM hour. Normally, such convergences are good places to look for pivots and pullbacks. However, if they clear that, I’d look for 4008.
Click the links below for moron the markets.
- Golden Surprise November 15, 2022
- The Repeal of Rule Number One, Don’t Fight the Fed November 14, 2022
- Swing Trade Screen Picks – Few Good Longs, No Good Shorts November 14, 2022
- Bond Market Rally is Technically Valid but Belies the Facts November 12, 2022
- Bad News for the Markets – Not Just Withholding Boomed in October November 3, 2022
- Surge in Withholding Tax Collections in October Indicates Faster Jobs Growth November 2, 2022
- Bear Market Isn’t the Mirror of a Bull October 31, 2022
- We Can Now Project When Fed Will Pause, But Not Reverse October 13, 2022
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