Sunday, July 21, 2024

ES Morning Update November 29th 2018

Ok, the bulls put a whipping on the bears yesterday with a huge squeeze up. While I was expecting some light volume float higher I didn't expect it to rally so much. But all is fine as it's playing into the perfect bearish setup for this coming Friday. Basically today would need to pullback some (can also go higher some first) and then close about flat... aka, the "spinning top" candle pattern. Then do the same on Friday and we have a chart pattern similar to 1987 where yesterday was like 10/01/1987, today like 10/02/1987 and Friday like 10/05/1987.

The bears need to hold the bulls back here and not give up much more ground. The prior highs of 2748 on 11/14/2018 and 11/19/2018 should be taken out by the bulls but that should only be for stop runs on the bears. A close back below that zone today and Friday is needed in my opinion to keep the similar pattern as in 1987. Failure to do that and the bulls could explode much higher and even catch that holiday season "year end" rally... which might take them to new all time highs. I give this low odds right now as the bulls need to prove themselves first, and so far all I see is a big short squeeze today. The volume on the SPY was certainly up higher but it looked more like bears capitulating then bulls buying. So I'll still look for a top this coming Friday on this bounce and go from there.

Author: Red

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