Sunday, July 21, 2024

ES Morning Update March 14th 2019

More grind up yesterday was the name of the game. This morning the futures are about flat so not much clues there on where the market wants to go next. And the prior 2817 high from a couple of weeks ago was taken out yesterday by a few points... which makes me think everyone shorted it, and that says "squeeze coming" to me. Maybe it rolls over here some but usually it's never this easy to just short the double top.

Most of the time they fall shy of hitting it by at least 5 points if not 10 points... or they run up through it to clear out the stops, which is what I think is coming before any meaningful pullback starts. And, the longer they hang out around the double top zone the more powerful the squeeze. Instead of only 5-10 points over it on the first hit and reversal, which could have happened yesterday but didn't, they might now need 15-30 points higher to run out all the bear stops.

It's boiling down to some "hold the zone" manipulation right now until this Quad Witching Expiration is over with tomorrow. If all goes well today and Friday won't see too much movement up or down and then Monday or Tuesday we'll see that final squeeze higher to end this long rally up from Christmas and start a playable correction.

Again, I do not expect it to take out that low last year but instead to make a higher low and then resume the bull market back up. And, I'm still 50/50 on whether this coming move down is going to start that correction or if it's just as small pullback and then back up quickly into April or May... and then do the big correction down for that higher low.

Anyway, for today I don't know what's it's going to do. I have no clues for the direction, and I already told you what my thoughts are for the next two days... but again, that's just guessing at best. Sometimes I get lots of evidence that gives me the next move with high odds certainty, but today isn't one of them. Have a blessed day.

Author: Red

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