Ugh. Here we go again. Is this the beginning of the Rigor Mortis Rally I warned about?
That V bottom on the hourly of the ES S&P futures ended up forming a reverse head and shoulders pattern that was completed in the wee hours this morning. The measured move implication is 4770. The 5 day cycle projection so far looks to be a range of 4730-50.
The market is currently in a meltup channel. The bottom of the channel is at 4685 as of 6 AM in New York. It rises to 4700 as of the NY open. At the same time, it faces resistance from there all the way up to 4726. A shallow pullback from that area would portend another upthrust late in the day.
Meanwhile, bears are a long way from gaining control. For starters, they’d need to break the meltup channel. Then they would need to take out a key support level. Hourly oscillators are still very bullish, so I don’t want to speculate on that until there’s an inkling of a turn.
Meanwhile, the big picture.
Don’t Be Surprised, or Fooled, By a Rigor Mortis Rally
When Boring Isn’t Bullish – Gold
Wheels Are Moving in Slow Motion for the Top
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