Equity markets ignored the sell signals yesterday and kept on going up. As we open this morning markets are now at a significant short term inflection point on ES, TF and NQ. The bear option is that all three are overthrowing rising wedges, which would then break down and retrace. That retrace would tell us a lot about the significance of last Thursday’s low.
The bullish option is that all three are in rising channels, and that the obvious next target on SPX would be at a retest of the last rally high at 1947. We should see which way that’s going to go this morning. I’m leaning towards the short option but if SPX can get back over 1920, then the bulls have likely won the inflection point.
ES Mar 60min chart:
TF Mar 60min chart:
NQ Mar 60min chart:
On the bigger picture if we do see a retest of the last rally high at 1947 SPX, then that is possible double bottom resistance, and if broken, that double bottom would target the 2084 area, with strong resistance in the 2000-20 area on the way. We aren’t at that inflection point yet but the setup looks nice and I’m considering it seriously.
