ES Morning Update June 28th 2022

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Yesterday was pretty much as expected as the market chopped around in fairly tight range to reset the overbought short term charts. We might see a little more of that today but a slow grind higher is actually more likely. Thursday and possibly Friday is when I'd expect to see a bigger squeeze happen.

The falling light blue is around 4030 today, 4020 tomorrow and 4010 on Thursday. It will be resistance of course but the common practice is to run up to it, or near it and then hover under it for awhile (all day long or a day or two) and then push through it later. The hovering would make the bull flag and reset (recharge) the short term charts so it and get through it.

It's like a battle between the bulls charging up against a castle wall full of bears determined to defend it. If the bulls wait long enough the bears will fall asleep and then they can breach the wall. This is what I'm thinking is going to play out with the bulls staying under the trendline today and tomorrow and doing the big push through on Thursday.

I'm still expecting 4050 or more this week, but not a lot more. I don't think we'll break the 4202 high from 5/30, so 4050 to under that level is my target. Have a blessed day.

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