Good morning, everyone. Although I have deliberately reduced the pace of new product development (following the advice of most here), I’ve got something new & spiffy coming out today that I know you’re going to love. So stay tuned for that.
It’s a pretty quiet opening today, so I thought I’d just say a few words about the different timeframes of the /ES. Let’s first take a look at a fairly short-term time horizon of the past couple of weeks. As you can see, we’ve had an important role-flip in that horizontal line. It has broken support and failed to beat it twice, indicating we have reliable resistance at this point.
In doing so, we have created a chunk of the larger chart which is an important part of the jigsaw puzzle of this bearish setup.
The entire chart above is highlighted below as a somewhat sloppy topping pattern. It doesn’t constitute any classically-shaped top, but it’s good enough for our purposes.
The real question becomes: what could cause the kind of battering to really compel this top to express itself in a steady drumbeat of lower prices? One distinct possibility: earnings. In a couple of weeks, we’re going to be neck-deep in a swirl of earnings. If the picture starts to become clear to “investors” that the tide has turned, we could see a true change of narrative that causes them to run for the hills.
