It looked like a sure thing yesterday. The market was breaking out on its way to a conventional measured move target of 3960. But then it stopped, and fell back below the breakout line before New York closed yesterday. This morning, the 24 hour ES S&P fuguetures made another run at yesterday’s high, but as of 5 AM New York time, they were having trouble, again.
There are two numbers they need to beat to be on their way higher. 3865 and 3872. Clearing those would bring the trading algos piling on the long side.
What about the other way. First things first, there’s an uptrend channel line at 3855 in the 5-6 AM hour that needs to be broken. That line rises to 3865 in the opening half hour of regular trading. But even breaking that would only set up a trading range, with the low parameter at 3806. That would need to be broken to turn the pattern into a top for the next couple of days. Which is the only time frame we watch here at the Stool. For the longer term outlook and trading suggestions, click here and join the fun. https://liquiditytrader.com/index.php/category/technical-market-timing/
To better understand the big picture right now so that you can take the correct action when the time is right, check out the following:
- Recession? What Recession? July 5, 2022
- For Swing Trades this Week, It’s Politics As Unusual July 5, 2022
- US Stock Market Celebrates the Froth of July July 4, 2022
- Gold Nears Triggers That Would Signal Brutal Outlook June 29, 2022
- Stocks Are Even More “Dover Sole” Versus Liquidity June 28, 2022
- We Knew QT Would Be Devastating, But You Ain’t Seen Nothing Yet June 21, 2022
- Dealers Assume the Position, as 75 BPs Coming Wednesday June 13, 2022
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