ES Morning Update April 24th 2018

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This morning the futures have broken out of the falling black trendline that makes a triangle with the horizontal green trendline. Many now think that we are off to some strong rally but I think we have one more down move coming to wipe-out the longs that bought the double bottom low yesterday. So we could open up and just rollover immediately or hold this rally all day and then rollover tomorrow.

I'm not sure which but I'm not interested in a long here as I think there's one more down move yet to come. It should be a back-test of this falling black trendline and I think it should also go lower then yesterdays' low to possibly the rising black trendline pointing to around 2642 or so right now. If that breaks I'll look for support at the falling red trendline pointing to around 2620 or so, but I'm not really thinking it will go that low. It could, and that would be fine with me, but just not expecting it.

However, if it rolls over today and starts the move down it should continue in the close I believe and ideally we'll see the low of the day right around the close. To me that will be the spot to go long as it will have lured in bears and shaken out bulls that were long yesterday. The futures already look "toppy" too me so it may rollover today versus waiting until tomorrow.

Usually there is a move down at the open anyway and then right back up again, which in this case might be the last move up before hitting strong horizontal resistance... which is around 2690-2700. If 2700 gets broken then this forecast is wrong, but I give it low odds of doing so... especially doing so and HOLDING! Anyway, that's what I see for today. Good luck.