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Return to the Scene of the Crime 11/18/22

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

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.

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