Well, I thought my long /ES would have at least lasted until now. It didn't.I bought 20 /ES at 831.75 late yesterday. It was at 836 when I called it a day yesterday, and in the wee hours of the morning it got up just a little higher to 838.25. I thought it would push toward the underside of the broken wedge at 850, but when I woke up this morning, I saw it had completely given up the ghost and was down hard. My stop at 831 had been taken out, so my $5,000 late-night profit turned into a $1,000 loss. Oh, well! At least that means all my short positions will be off to a good start with the opening bell.
The interesting takeaway from this is just how weak the retracement was. The /ES could only manage a few points to the upside before giving up the ghost. My view is that a trip close to 800 is very much in the cards by tomorrow or, less likely, even today.
