- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.

Thursday, 12 May 2016

Follow The Red Brick Road

I was wondering yesterday afternoon about a possible bounce overnight to retest the daily middle band on ES as resistance and we saw that test, and it has held as resistance so far. as long as that remains the case we now have mostly formed H&S patterns on SPX, RUT and NDX ready to take all three down on another leg down towards the 50% fib retracement of the move up from February on SPX and RUT, and almost a full retracement on NDX. Here are the setups on those three charts. SPX 60min chart:
RUT 60min chart:
NDX 60min chart:
On the ES chart I'm slightly concerned by the weak 60min buy signal but the path back to the 50% fib retracement of the move up from the Feb low is all laid out for the bears now. All they have to do here is not drop the ball, though obviously this has been an issue on occasion in the past. ES Jun 60min chart:
The next steps on this setup are firstly for SPX to fill Tuesday morning's opening gap at 2058.69 and convert that area to resistance. As it is at the same level as the ES weekly pivot that would mean that both key support areas on ES at the monthly and weekly pivots were converted too. After that a sustained break below the H&S neckline in the 2040 area should deliver the next leg down.

No comments:

Post a comment