Friday, July 19, 2024

ES Morning Update November 27th 2018

Afterhours and premarket there was some nice swings down and up and down again as market digests the tariff news put out after the bell yesterday. As least that's what the media will blame it on. There's also a new FP on the SPY of 268.45 around 2:30 am, which might be the coming high for this rally up from yesterday? It looks like we had an A wave of some small degree up yesterday and since it's looking like we are going to gap down this morning I'd say that wave completed at the close.

Today, or at least early in the day, we should have the B wave down. That leaves the C wave up into the close on Wednesday, which might be when that FP is hit? I don't have any targets on this B wave down but I don't think it will be too deep or too long in the making. My guess is that it's finished with by midday at the latest and we start the C wave back up from there. The dip buyers should be out right at the open but I don't think we'll start the C right from there.

We should drift lower for a few hours after the open I believe to form this B wave down. It will make a nice "inverted head and shoulders" pattern on the 60 minute charts too. Anyway, that's all I see for today. I still think we are going down again soon as I don't see this bottom as strong enough to hold for some year end rally. Good luck to both bulls and bears.

Author: Red

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