Most of the afternoons lately have been impressively dull and they all seems to merge into each other after a while. the main takeaway from yesterday and last night though was that, so far at least, the ES weekly pivot at 2128.75 (2133/4 SPX area) has been very solid resistance. As long as that remains the case the obvious next target is at least a retest of the last low at 2112.5 ES (2117.5 SPX area). ES Dec 60min chart:
The setup on NQ looks bearish here, with a clear triangle that in this context would break down into continuation most of the time. At the time of writing that triangle has broken down and NQ is retesting the retracement low. NQ Dec 60min chart:
Any decline here may not get far though. On the RUT 60min chart both RSI 14 & RSI 5 buy signals have fixed, and at the time of writing RUT has just traded sideways this morning as ES and NQ have been declining. This looks as though it is just marking time until ES & NQ are ready to rally. RUT 60min chart:
A retest of the current retracement low on ES looks likely, but I’m doubtful about ES extending further down without at least a strong rally. With the election just a week away now and the Fed tomorrow, this is not currently a market to get married to any position long or short.
A reminder that Stan and I are doing our monthly public Chart Chat at theartofchart.net on Sunday. That is free to all and seats are limited to 100 so if you plan to attend I’d suggest registering without much delay, and you can do that on this page here. We will be covering the usual 30 to 40 instruments across all the main trading markets, and delivering the best forecasting that can be achieved using math rather than genuine clairvoyance, so if you don’t know any genuine clairvoyants, and are interested in the likelier paths for the instruments that you trade, you should attend. At a total price of just zero dollars, this could well be the best value TA investment that you make this year!
