Well the US markets are closed for a second day today but the futures markets are still open in Globex hours. I wasn't certain that it would be worth doing a post today but blog traffic was only down about 25% yesterday so the majority of my readers are still trading or at least keeping an eye on the markets.
ES made an overnight low at 1393 at the support trendline I posted yesterday morning. There is now another potential double-bottom setup on ES with a target at 1432 resistance on a break over 1413. If there is no break up, then support is at the same trendline which should intersect strong support at 1388 ES in the next day or so. That's been happening more slowly than I expected yesterday as I hadn't taken into account that ES trading would be down as well during trading hours:
I'm treating NQ / NDX as the lead market for the current decline as it has the best pattern setup and because the decline has been tech led. If we see a bounce, and it's worth noting here that the current low on NQ was at the AAPL earnings announcement last week, then channel resistance is in the 2710 area. I will be treating the current move down as ending or already over on a break above this declining channel;
There's really not a lot else to say today, but there was a failed break downwards on positive RSI divergence on CL overnight. I have a possible rough falling wedge on CL and if we see a bounce into declining resistance that is currently in the 91.3 area:
There is another possible double-bottom on the EURUSD chart, though I'm doubtful about seeing a low here. Nonetheless the target is the 1.305 area on a break over 1.297, and EURUSD is testing declining resistance at the moment. If that breaks up there are good odds of a test of the possible IHS neckline in the 1.302 area at least:
I'm a bit doubtful about seeing the bounce I've been expecting while the US markets are closed but the European markets are looking stronger today and the recent ES action looks very much like a bull flag. Short term resistance is in the 1410 area and on an hourly close above that this current double-bottom setup on ES will look promising. US equity markets are expected to be open again tomorrow.
