ES Morning Update July 13th 2022

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We got the pullback to the falling orange trendline yesterday with a low of 3804 being hit, which is close enough if the market wants to turn back up today. But if it wants one more lower low then the 3780 level is about where the falling trendline will be at early in the day.

Of course there will be some wild swings up and down after the CPI number, so if the first move is down, and if it hits that level, it's buy in my opinion. If not, and we gap up instead, then I'd only expect a pullback to get close to retesting the low yesterday and then back up. One way or the other the charts are now getting down to a zone where they should bottom and turn back up.

Lower time frames will be oversold this morning on any further drop and the 6 hour chart will be close to oversold... but again, I'm not expecting it to hit 30 on the RSI as the 40's should be the turning zone on it. The point here is that we are getting close to this pullback ending and a strong move up starting. There's still good odds that we reach 4000+ by this Friday. This pullback is very normal I think for the charts getting overheated into last Friday.

 

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