Good morning, everyone. It's about quarter of an hour before the regular opening bell as I type this, and I'm quite intrigued to see what is going on in the pre-market. First off, it looks like my big DIG position is going to benefit heartily from the strength in EUR/USD and crude oil markets. It could fall apart, as any trade can, but this is the strongest push higher I've seen in this market in quite a while.
Second, and more importantly, the ES has fought its way all the way back up to 900, up from less than 740 just a couple of weeks ago. There is a huge, mombo, ginormous amount of overhead resistance here, both in terms of the Fibonacci retracement as well as the 2sweeties-style retracement.
If we manage to get above it, if will be a huge relief for the bulls (and an agonizing squeeze for the bears), since it will completely a not-shabby-at-all inverted H&S pattern, as well as push prices above the upper trendline of its descending channel.
All days are important, but some are more important than others. This is one of them.
