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As I pointed out yesterday, the degree of extension on hourly oscillators was extreme. That’s not just on the one hour bars we normally look at, but all the way out to 5 hour bars. On the other hand, the overnight sleepwalk allowed the oscillators to fall back to the zero line. An upturn from here could be explosive. That’s what usually happens when moves start from the neutral zone.
But if the indicators drop into negative turf, then we could be at the beginning of something far different from the recent straight up norm. We’ll just have to see how the first half of today goes. Maybe we’ll know something by 2:30 turn time.
For now, the hourly chart of the ES, 24 hour S&P futures shows trend spport holding at 6075. If they break that, then we can think about potential reversal. Otherwise, we gotta go up and test the high of 6100 before anything happens. Unlock Market Trends: S&P 500 and Dow Analysis for January 2025
For perspective, here are the 5 hour bars.
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