Overnight and into the early morning, the ES futures made a lower daily low. Prices then swung around with five-waves-up, and then a drop, and then another higher high.
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| ES Futures - Daily - Lower low & embedded |
The turn-about after the lower low can be part of a fourth wave. More importantly, price is still sticking to the lower daily Bollinger Band on the way down, and today - as of the cash close - the regular calculation of the daily slow stochastic has embedded. If Ira Epstein is correct - that the embedded stochastic is the strongest signal in technical analysis - then under certain circumstances the Smart Money may be willing to sell rallies.
As you can see from the Fibonacci ruler, price has not quite gotten down to equality with the prior down wave yet.
I'm still waiting to see if the hourly SPY makes a solid fourth wave up, and then a lower fifth wave down. So far, today may have started that fourth wave higher.
Have a good start to the evening,
TraderJoe
came very close to tagging the "a = c" level on SPY ($425.74)
ReplyDeleteDecember ES have traded into the rollover gap
ReplyDeletehttps://www.tradingview.com/x/zptK2aaH/
..into the 'prior' rollover gap. TJ.
DeleteSPY holding beneath 2sd lower daily band for day #4. Not even a try today.
ReplyDeletejust fyi : ES now at/below 4,310 & a reminder what Ira says about "selling new" outside of the lower band. This is probably a place where the Smart Money is looking to come back in, but at higher prices inside the band. TJ.
ReplyDeleteWeekly bb not too much farther down on cash. Weekly 100ma in the same area.
ReplyDeleteCouple of gaps around 4206-4231, 1929 scenario should see a bottom toward the end of the week or next Monday, then a bounce to a lower low on exactly Friday 13th October (how apt), this would be 29 trading days after the 1st September high. Fascinating so far, eclipses upcoming too in October (Puetz crash studies).
ReplyDelete**'bounce to a lower high'
DeleteES futures: 5 min (after-hours) expanding diagonal upward in futures. Also, upward overlap. Watch the low. TJ.
ReplyDeleteA new post is started for the next day.
ReplyDeleteTJ