ES Morning Update May 20th 2022

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Well, the "higher low" held yesterday, which was just one point above the 3855 low. Too me everything is aligned now for a massive rally to start, which will take us to new all time highs and below in the coming weeks and months. Today is a Friday, which is usually bullish or a nothing day most of the time. It's also the monthly options expiration (OPEX) for most all indexes and stocks.

Only the VIX has it's own separate date, which is always the third Wednesday of every month at 8am EST before the open... meaning the next months' contract starts at the open that day. Of course that explains why the market held its' gains up into the close on Tuesday to crush the VIX and make many "calls" expire worthless for the May contract.

Then the big drop started... typical manipulation by the market makers it seems. This morning we see the market up well off the 3856 low yesterday and as long as that holds today and possibly Monday I think enough of a bottoming base will be built to launch a strong multi-day rally.

I think we are in a similar period now like the October 28th to November 2nd, 2020 basing zone. And if I'm right next week will be a super strong one, especially after Monday as that should be the end of the basing period (if not sooner?). Nothing much more to say. Have a great weekend.

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