5 hour bars on the ES 24 hour S&P futures show the market to be extended here to the level where previous minor tops have formed. The market has also reached a major resistance area.
So where to from here? Straight down today? Lately the 3 and 5 day cycle periods have merged into a 4 day cycle expression. This is a common feature of this market. If the pattern holds up here, then a low would be due today and the market won’t correct much. At 7 AM NY time trend support is rising at roughly 5165, headed toward 5185 at the NY close.
If that line holds, the next move should be to a new high. That would show that the market is in trending mode. And that’s a situation where it is until it isn’t.
On the other hand, if that trendline breaks, then there’s a case for a pullback to 5150-55 before the next rally.
In the third week of April, when almost everyone was all beared up, I was bullish because both liquidity analysis and cycle analysis showed that a bottom was forming. Want to know what to do now? Stay ahead of the curve. Know what to expect and trade with confidence.
For moron the markets, see:
- Swing Trade Screen Picks – Surprise Shorts May 6, 2024
- Don’t Trust, Verify May 6, 2024
- April Tax Collections Soared May 4, 2024
- Gold Valley Rally May 3, 2024
- The Fed Doesn’t Matter Any More May 1, 2024
- Swing Trade Screen Picks – Hidden Gems April 29, 2024
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