The ES fucutures made a new high for the current 5 day rally over night, but it has since pulled back. The hourly oscillators have made nice negative divergences. Not that there’s anything wrong with that. Usually its just the market jerking off the bears, getting them all excited for nothing. But at the same time, this high is below the highs of 10 days ago. So while the shortest intraday trends are still up, the longer ones are still down.
Now we’re not here to divine the long term from these very short term patterns. I handle that at Liquidity Trader. The Ugh Market.
We’re just here to try to give you daytraders a hopefully helpful perspective. In that vein, we’re looking at the 4450 area here in the premarket as a fulcrum. If it holds there, we’re still in an uptrend, albeit one that seems to be bending.
If 4450 breaks, next we look to 4420 as a target. That’s where things could get very interesting over the next couple days.
On the other hand, if they clear 4490, then an 11 day bottom would be complete. It would have a conventional measured move target of 4670.
This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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Meanwhile, for your longer term infotainment and edification:
Liquidity Matters, The Fed’s BS Doesn’t
