OK, we’re a day trading thread here, so let’s keep that headline in perspective. On the other hand, if this sticks for more than a few days, then we should keep in mind that this low was higher than the one in June. But we”d still need to clear 3919 on the ES 24 hour S&P fuguetures to have that higher higher low, higher high sequence to call an intermediate uptrend.
Here in the short run, the ES was in the process of breaking out of a one week downtrend at 3800 as of 5 AM New York time. If this sticks, then the next target would be a resistance convergence around 3825. If they clear 3810, the bottom pattern would have a conventional measured move objective of 3890.
So stay tuned for more chills, thrills and excitement through this summer Friday in this Saga of the Temporary Bull. By the way, I think the ES would need to drop back below 3765 to put the bears back in business. Rule nothing out in this environment.
For the longer view that concerns most of us, see Advantage Bulls, But It’s Over If This One Thing Happens This Week.
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:
- Are the Fed and Treasury Geniuses, or Just Lucky? Part One July 12, 2022
- More Bad News Ahead for the Golden Boys July 13, 2022
- Advantage Bulls, But It’s Over If This One Thing Happens This Week July 9, 2022.
- Recession? What Recession? July 5, 2022
- For Swing Trades this Week, It’s Politics As Unusual July 5, 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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