ES bullish futures volume in the real-time session was slowing down today. After prices started down in the overnight, they basically stuck like glue to 4,600 +/- 10 points. The best suggestion I have at this point is to monitor this hourly three-touch trend line and look to see if it is significantly broken, if it back-tested, and if the back-test fails or not.
We could be making triangles or diagonals on light volume (say, waiting for the economic reports) but right now the waves have little power to break out or break down. The MACD has made lower highs and is currently below the zero line.
There is a weird way the market could have topped last night in a failure as the up wave is over 78% of the prior high, but, aside from the gap, there is little follow-through at this point. So we suspect either a diagonal or a triangle is in progress and patience, calm and flexibility are still needed.
Have an excellent start to the evening.
TraderJoe
Trend line broken lower in the evening session as 1) Fitch downgrades U.S. debt, and 2) D. Trump indicted for 06 Jan. Watch any snap-back retest to see if it fails lower
ReplyDeleteTJ
Not gonna snap back much if it's a 3. NQ hinting it may be.
DeleteThanks Tj. Not a deep cut as compared to EU and Asia closing. Tupperware type stocks are surprising upside as short selling squeeze occuring with long term funds or this may all be a trap for bulls.
Deleteyw..
DeleteSecond consecutive day of VIX gap higher. Another one this week that remains unfilled would in my book qualify as "series"...
ReplyDeleteA new post is started for the next day.
ReplyDeleteTJ