Tuesday, March 21, 2023

Back to the Daily

Below is the daily chart of the ES futures. Tomorrow is FOMC decision day - followed by the press conference.


Today price is up & over the 50% Fibonacci retracement level and neared the 62% level. We suggested the daily Bollinger Bands could go sideways. They have. Still, the daily bias is up as price is over the 18-day SMA (or 'the line in the sand'), and the swing line is up - together making the local trend up. The daily slow stochastic is not yet in over-bought territory. The prior green (up) fractal has not yet been exceeded higher. 

The fact that the up wave in the futures can be counted as either the triple zigzag w-x-y-x-z or as an expanding diagonal, and the fact that the up wave in cash can be counted as either the triple zigzag w-x-y-x-z or as a contracting diagonal, gives the market an expanded set of options for price movement in the wake of the FED meeting output. Caution, patience and flexibility are thus even more needed at this time.

Have a good start to the evening.

TraderJoe

10 comments:

  1. Looking for one more high.

    https://imgur.com/ve24IQu

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    1. Original thought did not workout overnight but maybe another running triangle just ended.

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    2. That seem to work, no I wait for the financial wizards to finish their seance!

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    3. Update https://imgur.com/zRfTrqk

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  2. ES daily: outside reversal day - as far as I can tell. TJ.

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    Replies
    1. If were in a 3, the 1.618 is at the lower channel line.

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  3. Thanks TJ,

    When can we confirm iii? Close below 18 and 100 sma or below 3839?

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    Replies
    1. Manu .. you should not have this question at this point. You need to learn the wave principle sufficiently so you can answer such a question as I have in the next post. TJ.

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  4. A new post is started for the next day. TJ.

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