Wedn 6:27 AM EST
So far, in overnight trading, ES made a Hi 1070.5 and Low 1063.75. The 1070.5 is just one point away from the previous high of 1071.5.Although ES violated the preferred support at 1065, support held at the 20MA so the pattern remains bullish. Key numbers to watch are 1051 and 1072.
A SUSTAINED break of those could trigger accelerated price movement in the direction of the break. It will be interesting to see if ES can break over 1071; it has tried unsuccessfully many times. A break under 1051 would be bearish short-term. I wouldn't expect a break of either on the first try, but anything is possible, especially if there is high volume when the test occurs.
Tues 5:11 PM EST
The pattern carved in the 15min ES during the past 8 hours suggests a move up to 1076 if 1065 support holds. Whether it happens overnight, or tomorrow, or at all, remains to be seen. The SPX chart suggests SPX target of 1084 in the coming hours/days. ES 60min chart shows bearish divergence which could stop the move, but SPX does not have the divergence. The support and resistance are more important to me these days than divergences, unless the diverg is in the daily or weekly charts, not 60minute. Another bearish thing that could stall the move is that the ES has tried several times (without success) to hurdle 1071. Whether that failure is due to weakness or just high level consolodation remains to be seen, but that is a cautionary warning.
* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".
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