Rule Number One is – The trend is your friend.
But which trend? Here’s a 2 hour bar chart of the ES (as of 6:;42 AM in New York), S&P futures, for perspective on the very short time frames we watch on this thread. There are two trends. One is a 30 day downtrend that has not been violated. The other is a 3 day uptrend, which has.
There are two sport levels to watch on this pullback, 4515-20 this morning, and if that breaks, 4490-95. If they break those, the bear is back.
Yesterday’s unmet 5 day cycle projections are now moot, and the fact that the market failed to get to those final projections is a sign of weakness.
OK, a little too late for that tidbit to be helpful.
Here’s the hourly view.
The 2-3 day cycle projection 4515-20, coinciding with the first sport level. I would expect a bounce there.
Meanwhile, the big picture:
Stampede of Short Chickens Has Bulls Sniffing Something
Now We Reap the Whirlwind of the Fed’s Malfeasance
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