My Crazytown short trade from 2070 ES yesterday morning delivered nicely and ES broke below the weekly pivot at 2050.50 overnight. The key support levels on SPX this morning are the 50 hour MA at 2052, being tested at the open, and possible double top support at Friday’s low at 2043.98. If bears can convert the 50 hour MA at 2052 to resistance then that opens up lower targets. Today is a possible cycle trend day so it’s possible we could see a hard fail today from an AM high. SPX 60min chart:
The 5 day MA tends to act as good intraday support and resistance and that closed at 2065.50. Any move above that level risks a retest of the 2075 high. SPX daily chart:
The 60min sell signal that fixed on ES before the open yesterday has made target and ES is close to a test of possible double top support. A conviction break below opens up the possible double top target at 2003 ES / 2013 SPX. ES Jun 60min chart:
This is a nice looking decline but it doesn’t mean that the rally high has been made yet. This rally is in the topping process and things get choppy and spiky in the topping process. Everyone shorting on Friday morning on the basis of the strong decline then was run over hard. Everyone going long yesterday morning on the basis on Friday’s trend up was run over hard. This can last a while so it’s best to be nimble and patient as this develops.
Stan and I are doing our monthly public Chart Chat at theartofchart.net on Sunday afternoon and as usual that will be covering equity indices, forex, bonds, energy, precious metals and some other instruments so if you have any interest in whether tradeable instruments are more likely to go up or down, or just enjoy seeing high quality TA in action, then all are welcome and you can register for that here.
