The Low Before The High?

By -

NDX retraced today without hitting my channel resistance trendlines in the 5830 area. My working assumption is that NDX will test those levels tomorrow or Friday. NDX 60min chart

170531 NDX 60min

RUT is getting close to some serious support levels. RUT daily chart:

170531 RUT Daily

The SPX low this morning was at the 50 hour MA. A red close today followed by a new ATH tomorrow might well set a daily RSI 5 sell signal brewing. SPX daily 5dma chart:

170531 SPX Daily 5dma

The ES and NQ futures charts below were done before the open for Daily Video Service subscribers at theartofchart.net. If you are interested in trying our services a 30 day free trial is available here.

If we see a new ATH next on NQ then today’s decline has set a possible double top forming here. Unsustained spikes down are frequently seen just before swing highs. NQ Jun 60min chart:

170531 AM NQ Jun 60min

TF retraced to falling wedge resistance and then broke down from the wedge, making the H&S target at 1354 and then rallying. The falling wedge may be expanding into a larger pattern, but if that isn’t the case then the falling wedge target is at a retest of the last low at 1344. TF Jun 60min chart:

170531 AM TF Jun 60min

ES broke up from the bull flag channel I was looking at, made a marginal lower high against the ATH, and then declined to form a larger bull flag, this time as a falling megaphone. Setup here still leans bullish, and still looking for a minimum full ATH retest on a break up. ES Jun 60min chart:

170531 AM ES Jun 60min

Tomorrow is the first day of the month, historically leaning strongly bullish. On this setup I would be surprised not to see new all time highs on SPX/ES and NDX/NQ this week and I’ll be watching that trendline resistance on NDX/NQ on any new ATH there.

Mark This Post as a Favorite