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The futures traded yesterday morning and overnight last night, creating a megaphone pattern on the ES, 24 hour S&P futures. The upper line runs from 6050 at 6 AM ET to 6065 at the NY close. I’d be shocked if that were broken. First things first, the ES would need to clear resistance around 6035-40. Hourly cycle indicators are sitting at neutral. Anything that starts from this level is likely to be big, very big, the biggest ever, but the direction isn’t clear yet. Unlock Market Trends: S&P 500 and Dow Analysis for January 2025
As for the lower line of the megaphone, or broadening pattern, it goes from 5960 at 6 AM to 5950 at the NY close. If that’s to be attack ack acked, you oughta know by now, there are multiple spport levels to contend with, starting just above 6000 and then every 10 points or so, down to the descending trendline.
I asked AIvin and the Chat Monks to flesh out some details on today’s chart. Although I think asking AI to “flesh out” details is an oxymoron:
Here’s a brief analysis of the day trading implications based on visible patterns and indicators:
Key Observations:
- Trend Channels:
- The green upward trend channels suggest bullish momentum is currently in play.
- However, the red downward channels indicate the market is testing a potential breakout zone or may consolidate within this range.
- Resistance Levels:
- Immediate resistance appears around 6035–6048. A breakout above this level could lead to further bullish momentum.
- Overhead green zones indicate potential targets in a sustained rally, likely above 6060.
- Support Levels:
- Key support lies around 5980–5970. A drop below this level could test lower supports at 5932 and potentially 5825 in a bearish scenario.
- Multiple red horizontal lines suggest congestion, which could limit downside momentum unless decisively broken.
- Momentum Indicators (MACD-like):
- The lower indicator panel shows mixed momentum. A potential crossover in positive territory may signal continued bullish pressure.
- Flat or converging momentum lines could indicate hesitation or range-bound action.
Day Trading Implications:
- Bullish Scenario:
- A breakout above 6035 could provide a day trading opportunity targeting 6060 or higher.
- Trailing stops should be used to lock in profits if momentum weakens.
- Bearish Scenario:
- A drop below 5980 could lead to a short trade targeting 5930–5920, with a cautious watch for reversals near support.
- Neutral Scenario:
- If the market remains within the 5980–6035 range, scalping strategies within this channel may be more effective.
- Actionable Plan:
- Wait for confirmed breakouts or breakdowns before entering trades.
- Monitor volume and momentum for confirmation on either side of key levels.
Moron the markets:
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