I was saying intraday yesterday that if the bulls were going to take back control of the tape here, then they needed to break back over the daily middle band, currently at 2072, and then hold it as support on a decent retest. In the absence of that no serious technical damage was being done and there was little reason to expect yesterday’s rally to be the start of something bigger.
The situation for bulls here didn’t improve overnight, with marginal higher highs and fails from those on ES, NQ and TF that have resulted in 60min sell signals fixing on all three charts. The ES monthly pivot at 2063.80 (2068 SPX area) wasn’t successfully converted to resistance on this rally and the weekly pivot at 2054.10 (2058 SPX area) is now being retested as support. If that is reconverted to resistance then all of the significant bull technical gains from yesterday will have been reversed.
I like to post a copy of the bonus charts that I do every morning for subscribers at theartofchart.net here every so often to give an update on bonds, USD, oil etc that I cover there these days rather than here, and I’m running behind today so today seems like a good day to do that. If you’d like to see these every day then you would need to sign up for either of the Chart Chat or Daily Video services, and if you want to sign up for the Daily Video Service then I’d mention that you’d want to do that before the end of May, as we are planning to increase the price for that service substantially then. No price increases will ever be applied to existing subscribers as long as their subscription is continuous, so anyone signed up before then will continue to be charged at the current price for as long as they are still subscribers. Our subscriptions page is here.
ES Jun 60min chart:
NQ Jun 60min chart:
TF Jun 60min chart:
DX Jun 60min chart:
CL Jun 60min chart:
GC Jun 60min chart:
ZB Jun 60min chart:
On the basis of yesterday’s and the overnight action I’m still very much looking down on equity indices here, and unless we see bulls break back over the daily middle band the obvious next targets are at new retracement lows unless there are (bearish) triangles forming here on ES and NQ. If so those triangles should still deliver new retracement lows, just more slowly.
