Well that was interesting yesterday, and that was a really impressive move on equity indices that finally ended the longest trading period in SPX history without a 5% retracement. The mindless bullish euphoria has ended for the moment and overall we should be back in a more two way market environment for a while. In terms of this current move we may now have started a retracement to take us into April or May.
In the video below I’m looking at today’s rally. The obvious target on ES would be the 50% retracement in the 2700 area and Stan is looking at the 2700-40 area. After that the odds favor a retest of the overnight lows, which were of course well below yesterday’s RTH lows. Intraday Video from theartofchart.net – Update on ES, NQ and TF: (more…)

