ES Morning Update August 5th 2021


Looks like a whole lot of nothing is continuing to go on in the market this morning. But it still looks more bullish then bearish. We had a little pullback yesterday that got quickly stopped at support and followed with a quick bounce to keep this sideways channel intact. As long as this continues I still favor the bull side and expect the break to go up, not down... whenever that finally happens. I do think we are close to a break as it's been two weeks now, which is more then enough time to base and reset charts to whichever way the market wants. And while the news doesn't cause the market to go one direction or the other it's commonly used as a spark to start the next big move.

This morning we have Jobless Claims at 8:30 am EST and tomorrow at the same time we have the Non-Farm Payroll report. I think one or both of them is likely to get this market out of the trade range it's stuck in. And since that small pullback yesterday and quick recovery the market has been going sideways to make yet another bull flag.

Just from a technical point of view you have that one day old bull flag, inside a two week old bull flag, with the market still above all moving averages... which again supports a breakout to the upside. Yes... technical analysis isn't always right as it fails from time to time. I think we all know that, but I have to stick with something that works more often then not... so I'm sticking with the breakout favoring the bulls. I'll be a big bear at some point soon, but not right now. Remember that at heart I am a bear, but I have to play the market they give me and right not it's still favoring the bull. Have a blessed day.