A bottom. Not THE bottom.
But how big a bottom? Meh, not that big. If the ES 24 hour S&P futures futures clear 4050, then we’d be looking at 4070 pdq. There are three resistance lines converging around 4070-75, so the odds don’t favor clearing that. But if the do clear it this afternoon, then we’ll see some giddyap.
Conversely, a rollover below 4060 should have them testing the low very quickly, and possibly breaking down. Especially if there’s a weak bounce off the test of the low.
Also, always remember that the Round Number Magnetron should be a powerful attractor in both directions.
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For the big picture:
- Buys Beat Shorts in This Week’s Swing Trade Screens May 9, 2022
- Big Tops Lead to Big, Bad Bear Markets May 8, 2022
- April Tax Collections Still Running Red Hot Mean That Fed Must Get Tighter May 4, 2022
- Time to Catch Gold Knives May 3, 2022
- The Fed is Tightening Into a Sheet Storm May 2, 2022
