Trading Edges That Last
- You May Also LikeFor more information about this report please refer to the Market Bias Informant pageREAD MOREOne very reliable pattern showed up today (Jun 13, 2011) in Emini S&P that worths a more detailed explanation. The Setup Market down more than 2 to 3 percent from previous month ...READ MOREESNQAH High2096.004415.50AH Mid2095.634414.75AH Low2095.254414.00READ MOREESNQAH High3772.5010956.50AH Mid3764.2510928.88AH Low3756.0010901.25READ MORE
Overview Emini overnight range 2071.25 up to 2086.00 (at 9:05 am) Overnight Midpoint 2078.50 Previous Week Mid 2065.00 Emini S&P is now trading at the top part of its range with ...READ MOREESNQAH High1880.503585.75AH Mid1878.383579.25AH Low1876.253572.75READ MORE
As Featured In
S&P 500 Feb 25 to Mar 01 Outlook
Lawrence’s Comment
ES breakout to the upside and tagged the minimal target of Y+2. Reversed from there and failed to hold Y+1 gave us Y-0. ES did not just tag Y-0. It flushed down to Y-1 in 1 go. That confirmed the FBO on weekly to the upside and staged Y-3 as target. ES tagged Y-3 and accumulation was detected. Closed the week above Y-1 and midpoint.
Outlook
Extreme swings after weeks of tight range and pinball movement between close range targets is pretty normal. ES is more bearish than Dow and a retest of Y-2 is likely if ES fails to hold above B-0 / Y-1.
Notice that on weekly chart, this drop was simply a mild pullback that is necessary if the market wants to go higher. In another words, it looks and feels like the normal shake out move in a strong bull run. Hence it is difficult to be very bearish at this point.
I mentioned the week prior to last week during real-time chat that I was looking for a 30 point pullback. What I did not anticipated was that the move could be done in 2 days. I am waiting for the market to give me clues this week to figure out what to do from March to May.
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