Wednesday, June 12, 2024

ES Morning Update May 24TH 2024

The bears held the line yesterday and stopped the bulls from breaking through. The bulls tried really hard but got exhausted and the bears pounced on them producing a nice pullback. But today is Friday, which is typically bullish, so I would expect a "calming down" of the market.

I doubt if we see another large down day but most likely we'll bounce and close green, or at least a smaller red day. Odds favor a green close but if the rally is early in the day it could fade by the close and end red. Now from a technical point of view the daily chart is just getting started rolling over, so if the bears can keep the momentum going next week there is plenty of room left on the downside.

If this happens then I'd look for the end of the month for the bottom where a strong rally back up should follow. Now I don't know if that will be "the bottom", meaning we are off to new all time highs again, or just "a bottom", meaning we will have just a bounce and then another leg down in June. That's impossible to know, but from a "common pattern" point of view around the end of every month is where turns commonly appear. Lastly, don't forget that we are close on Monday for Memorial Day.

Have a great weekend.

Author: Red

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