In the grand scheme of things, I still maintain that nothing has really changed. As I had mentioned last week, as long as the 3271 area remains unbroken to the upside , downside risk still remains. The expectation of of the 54-57 area from last week came to fruition today and it remains to be seen whether today 40+ point move has more than than just the sound of bears beginning to get squeezed. The big guns report Thursday after the close, so Friday could be a pretty interesting day.
Last night I had written that the the inability of the market to get to the O/N high at 46 was a bit concerning and that a poke below 07.5 could potentially set up for a move to 91 (74). Well we got a poke below 07.5, to 04.5 but perhaps that was a designed false break, because from that point on, the market did not look back. Once again the battle at the 30 area was pretty intense and it is heartening at least in the VST to see the retest hold. For now, I would put that as the deck, with upside targets at 64 (lots of trading there), 71-74 and then O/N high from last week at 85. Lets see how this plays out. Given, how ES moves, there are several routes, so patience and a little bit of chutzpah will be needed, IMHO. GL
Last night I had written that the the inability of the market to get to the O/N high at 46 was a bit concerning and that a poke below 07.5 could potentially set up for a move to 91 (74). Well we got a poke below 07.5, to 04.5 but perhaps that was a designed false break, because from that point on, the market did not look back. Once again the battle at the 30 area was pretty intense and it is heartening at least in the VST to see the retest hold. For now, I would put that as the deck, with upside targets at 64 (lots of trading there), 71-74 and then O/N high from last week at 85. Lets see how this plays out. Given, how ES moves, there are several routes, so patience and a little bit of chutzpah will be needed, IMHO. GL
Comment:
At least the title for yesterday's post was spot on. No, I did not see this coming (the move O/N) but now that it is done and dusted, a perfect excuse to revisit support in the RTH. IN some ways, textbook action but not pretty if you were holding long. Mr. Toad's wild ride, if you are familiar with that Disney world ride in the 70's. Anyways, with block buster earnings the higher targets mentioned yesterday are likely on tap, but then, if it were that simple, the title would not be apt. GL