The fifth time’s the charm? That’s right, this morning at 5 AM in New York, the ES S&P 500 fugutures are undergoing a fifth test of a week long trendline on the hourly bar chart. On each of the 4 prior occurrences, the line held, and the market then pushed onward to another new rally high.
At this point I would think that they’re pressing their luck. They’ve probably run out all of the scared bears, or “bares,” covering their shorts. And more sellers will be joining both from the long side, and those fearless growlers adding to their short inventories.
A lot of time, we blame, or credit, the bulls for these rallies, when in reality, we have met the enema, and it is us.
But you must admit that, looking at the 2 hour bars over the past 6 weeks or so, this is a thing of beauty. A true work o fart. The grande dino in all its glory, tromping across the fields and farms and hills and beaches and streets, crushing the will of the bears to fight on, but fight on, we must, even if it means getting long once in a while. Which, we have done over the past couple of weeks.
Now for a look at our usual 1 hour bars lookie. The first trendline of sport comes in at 4500 as of 6 AM NY Time. And below that are multiple sport levels and trendlines down to 4480. The 60 hour MA is another usual area of sport. That’s around 4470. But the key to the severity of a pullback, assuming we get one, is 4468. If that holds, bulls remain firmly in charge.
What if 4500 holds, you ask. Then I think that we see 4540. And that’s it.
For now.
For the big picture.
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This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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