ES Morning Update March 27th 2020


Yesterday was another strong move up, and especially into the close. This morning we see the futures down but overall the market still looks bullish. It's in a nice rising channel and should find support and turn back up at some point today. I don't know for certain if it make it to 2700 or not, but it's very possible. It's the last day of this week and odds are good that they will close it green to make the weekly candle on the charts look good. As for next week,

I've thought about this last night and I don't think we'll drop much on Monday and Tuesday as it's the end of month and the quarter. It's pretty important for the bulls to keep the market up in this area to save the monthly and quarterly candle on the charts. Others have posted charts (I don't have a copy... sorry) that shows a multi-decade long rising channel that the market is in, or was "in" until the big drop we've had.

Getting back up into that channel on a monthly and quarterly closing candle is important to save the market from being officially labeled as "in a recession, or depression", and I think that's exactly what they will do. So I'm not thinking about doing any trades over the weekend for the very reason. If the pullback some on Monday it shouldn't be big, and it should be erased by Tuesday as that's the last day of the month and quarter.

My guess is that they will keep it going up in this rising channel until April starts. That will be a new month and quarter, so another drop is possible for late next week. But today I think they will turn it back up by the close and end the day and week out on a GREEN candle. That's all I have to today. Have a wonderful weekend and always remember to thank God for all you have... a home, an income, and food on the table. Many don't in this world and live on the streets. Take every trade you make, good or bad, and be extra thankful that you are still able to keep in the game.