Tuesday, July 23, 2024

ES Morning Update November 7th 2017

Very close now to the 2600 level, hitting an afterhours high of 2593.50 before stopping and rolling over.  I looks like they are heading down to the blue rising trendline again that's being providing support for a long time now.  If the bulls can't make it back up today for another higher high then you can certainly expect them to try on Wednesday for it.  And I think that will be the real test.  If they make another high then the rally likely continues for at least another day.  But if they fail it would setup an A down B up pattern and leave the door wide open for a decent drop on Thursday for the C part.  First support would be lower rising blue trendline and then those two prior lows in the 2560-2565 area.

But that's counting your chickens before they hatch, which seems to fail way too often for the bears.  So for today let's just see if the bulls fail to make the higher high today and then we can call the move down an A wave (possibly) and then tomorrow we watch again to give the bulls another chance back up for another higher high.  If they fail again and only put in that lower high into the close we should have a good shot at a short going into Thursday.  Therefore today would be a setup day if this occurs.

As for how to play today... beats me?  I don't see much downside happening as that rising blue trendline is right close to the current price level right now, and it's be a strong support for quite awhile now.  Break it cleanly and I'll get excited but until that happens I don't see much to play that has high odds.  It's too high to go long and there's not enough sellers to take it down, so you can't short it either.  Just the same old slow grind that benefits no traders.  Let's see if today's slow grind is to the down side.  Bullishness is off the charts it feels like and we need a nice pullback to shake them out.  This lack of Volatility is bad for everyone as traders just can't make money successfully without some nice swings up and down.  Anyway, I don't see any good setups long or short today... most likely we'll drift down slowly but nothing that I want to trade.  And naturally if we make another higher high today then life goes on for the bulls and you can throw out the bearish setup I suggested for another day.

Author: Red

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