Presently, the SPX is finding a great deal of support at the 088 level. That is our next target. I suspect that it will be taken out overnight in the futures trading. If we can clear 088 we get our test of 082 - which is the 38% retrace of the last leg. It is also close to the 50day MA. If we are going to bounce back early, it will be there. If we break support at 082ish - then look for 074-071.
Don't want to jinx it, so let's keep it simple tonight. Here is the ES hourly chart.
Notice that the clossing congestion is very similiar to the pattern of Nov 26th - where the selling just kept coming and the ES fell 31 points in an overnight session. Judging from the action today I would not be surprised by a similiar sell-off tonight - or at least a test of 082ish. I have also highlighted the 067 area as a very reasonable short term target.
Cheers!
4 comments:
Hi David ,
Can we call it a triple top now ? or is it to soon .
Getting some rounding off the top a bit too
It looks like we got a wave3 that I was waiting for , but we really might have a bunch of 1,2 1,2.
Boom , Wander , Boom Wander seems to be the local pattern. The patten of most retail getting in on the Boom still holds too.
Forgive me but it all seems too anti climatic,..... maybe that is a good thing , as Sep and Oct , where dramatic and wowing and wild , and all where for not. Perhaps foot in Bear trap too may times makes me
watchful ,
Much was done today , much more to go from here .
My Best , Thanks again
Hey Payline,
Can't call it a top yet. We are simply rounding out this last reaction high. We have to see if this move has intention - and that will require a test way down in the 029 range - with a close below 035. At that point, we wait to see what the next reaction high looks like.
Right now we are range bound - 1080 - 1110ish.
Watching the futures tonight looking for some clues.
I'd think that we bounce again at some point. I'm still plenty short but have been covering.
David, Does the afternoon strength lead one to conclude we go higher before lower? Also there seems to be a trend line on the daily ES chart forming, the lows of 11/3, 11/27 and now the bounce today. I assume we can consider that ^trend line as support going forward?
Thanks, Bob
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