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Well we got the breakaway gap down that I was looking for yesterday morning and all of those H&S patterns I posted yesterday have broken down. None of them have made target yet and I’m still looking at the 38.2% fib retrace at 2023 as first serious support and the obvious first target on SPX. The daily lower band is at 2025, broken resistance at 2022, and I have the H&S target in the 2018 area. This area could well be the low area for this retracement. SPX daily chart:
If you have been following us in the past few weeks, you will know that we have been insisting saying that ES was a SHORT, in part because of the large number of consecutive higher WEEKLY closes (5 and then 6), which some people thought was an indication of strength with a high probability of continuation of the trend.
Obviously they don’t know what they are talking about.
Here below is a WEEKLY chart that shows what (almost) always happens when a market pushes to its limits (this is the ES market, after 6 weeks up in a row):
Now, before some smarty-pants is going to jump up and say the money was made on the LONG side of this leg, please remember we have offered the BUY signal long time ago, when the market was down below 1900, so if you were a subscriber you know where the time to BUY was and if you did buy, it would have been a great success. After a certain point it was time to SELL and there we were until a few days ago…
