Wednesday, June 19, 2024

ES Morning Update December 19th 2017

Looking at the various charts this morning there's no big change from yesterday.  It's still bullish and should be putting in that lower high on the MACD's today once it hooks back up on the 60 minute chart.  The 6 hour chart it still pointing up but hooking down a little, so it too suggests another day is needed before getting overbought enough to stop the bulls advance.  This doesn't mean that we'll pullback though, rather instead it means we'll likely stop going up tomorrow sometime.  It would take some news I think to cause a nice pullback.  What could cause that in front of Christmas is unknown?  So I would count on any surprises at this point.

However, once the tax bill is finally "officially" passed with ink to paper by all the Senators voting and not swaying back and forth on their decision there could still be a "buy the rumor, sell the news" event.  Meaning the relief from it being over with (remember, the market hates uncertainty) might result in some "end of the year" selling.  I wouldn't expect to much but with everyone super bullish right now a move down to prior resistance in the horizontal support area of 2670 is not out of the question.  After that we'll just have to take it day by day.

As for what I'm expecting today I'd say more of the same ol' sideways grind higher riding that rising trendline of resistance.  Yesterday was the stronger move up so I'm not expecting much today.  It's more likely going to consolidate early in the day and later in the day we could the MACD turn back up and put in a lower high to setup negative divergence for tomorrow.  But I doubt if the price level raise much, maybe 4 or 5 points, but another 10-20 points is not likely today.  Tomorrow we could see the move down happen if the divergence sets up and plays out.  Again, I'm not expecting a lot on the downside but there should still be a little as I'm pretty sure Santa arrived early this year and is getting tired.

Author: Red

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