A big overnight selloff has been reversed in the early morning hours, half way through the European trading day, and 2 hours before NY opens. The ES 24 hour S&P futures have returned from a knife plunge, back to unchanged since the NY close. The selloff resulted in a 3 day cycle low. It also broke the potential positive divergence in hourly oscillators. While they’ve since turned upward, the lack of a positive divergence usually means at least a test of the low, or lower low ahead before a tradable low. So I would be on the lookout for that late today or Monday.
A test of strength is dead ahead with a resistance convergence on the hourly chart in the 8-9 AM hour at 5005. If they clear that, then it should be onward and upward. If they turn tail at that point, look for that test of the low. One More Rally To Go
For moron the markets, see:
- Warning Signs Abound, But Ignore Them for Now April 16, 2024
- Swing Trade Screen Picks – List Shrinks With Good Profits April 15, 2024
- No More Downside April 15, 2024
- Back to the Gold Old Days 4/9/24 April 9, 2024
- March Withholding Tax Collections Actually Stunk April 5, 2024
- Banking Data Says This Is Last Hurrah for Stocks April 3, 2024
- The End Is Not Nigh March 26, 2024
- Markets Create Money, Money Talks, Markets Listen Etc. March 12, 2024
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