From the highest high in the trend count, probably the high of the Minor A wave, up, today made an outside key reversal day down, as shown in the ES daily chart, below at the cash close.
Although Amazon and Apple earnings are not out yet, this is also accompanied by the loss of the embedded status of the slow stochastic and a close approach to the 18-day SMA at this time. The only day the embedded status can be regained is the next day (tomorrow's close).
The high of an outside day down should not be taken out within the following two trading days or it can constitute a trap for the bears. With this in mind, it bears watching the impact AMZN and/or APPL may have on the count. Further, the tomorrow is the first of the new month with possible inflows from the usual passive sources, so some sort of correction may result.
If price starts significantly trading down through the 18-day SMA, and closing there, then the Minor B wave is more likely underway.
Have an excellent rest of the evening,
TraderJoe
AMZN now out: issues lukewarm guidance.
ReplyDeleteEarnings per share: $1.68 vs. $1.33 estimated
Revenue: $167.7 billion vs. $162.09 billion estimated
TJ
ES Daily - this morning, so far, we have taken out the prior day's low, and the first down (red) fractal, back. The second down (red) fractal back is also shown.
ReplyDeletehttps://www.tradingview.com/x/6qE04ZNq/
Price is trading below the 18-day SMA but hasn't closed there yet. The swing line still has a higher high and now lower low but has not yet confirmed a trend lower. The slow stochastic is still not embedded as of this time.
The Payroll Report is due out at the bottom of the hour.
TJ
ES Daily - second down (red) fractal back now broken with a new ES low.
DeleteTJ
Trend line breaks everywhere on the dailies.
ReplyDelete