i don't know what happened but my old chart kind of got messed up. Do not like this but will try and recreate the old one. Anyways, the 2626-2630 level got tagged today and we sold off!. That level was not only a fib level, but also the bottom of the range of Oct/Nov from where we broke down and so was likely to act as resistance. For now, I se support at the 2600 area and below there is support at the 2587 and then 2560 area . (this was the bottom of the range for last week) We might PB here to gather some steam to tray and target the range of OCt/ NOv. Targets there are 48-53, 76, 91 and ultimately 2726 or so. Still a long way off. SO a break now of around 2612 will likley head to down to the 2597-2600 area. Lets see what tomorrow brings. For now, ES sealed the break down with a Kiss..!
Comment: Well, here we are tagging the 96 area. For now, it seems that 2609-2610 will likely be all we get to the upside. My expectation is for a test of the 2587-94 area
Comment: Might get to ydays close. By my take, the more time we spend below the 2613 area, the likelihood of 2582-87 and potentially 2560 increase.. Perhaps a rally into the open, close gap and then sell off. O/N we bounced off consolidation range high from last week in the 2596-2600 area. I kind of like the 2582 area to begin with.
Comment: We got the rally into the open closed the gap, but did not sell off. There was a scenario that might take us back to 2628-30. As I am writing this it appears that we might be turning here. Whoa! what was that. News. What a candle. We got past 2644 by a hairs breadth. That was a 1618 fib.. now getting back to earth. Looks to me that the 55-75 area is a possibility. AS long as we stay above 2612 or so.
IF you look at the chart prior to this (Seal it with a Kiss) I had drawn the triangle (Magenta) which we broke out of to hit 2626. IN that I also drew a Red dotted line that ran from the 1/8 low to the 1/14 low, which ran through the 2584 area. Whilst the support lines (dotted green) represented areas of support, at 2601 and then 2587 I believed that we were forming another IHS and the RS would be the 2587 area, as it also coincided with a VPOC on the 30 minute charts. I guess I was caught on the wrong foot. I was correct in assuming that the O?N gap would be closed and in the back of my mind had a less than 10% chance of hitting 30 again. I never, imagined that it would run straight up to the 45 area. I expected it to head back to the 87 area before reaching its current levels. I am not surprised we are these levels, as I have posted these for a while, just that I thought a little lower then higher. That is the beauty of this vocation. Now we are at the 77 level, the next area comes in at 88-90. IN the VST support is at the 32-46 area and below that we have the 2626, 2600 and then 2566 area.Now that we are here at these levels, above 88-90 is the 2710 area and then 2732 and then the 2782-86 area. I have a ticket to the Moon, for now. It will come back down to Earth, at some point. Have a great Long Weekend!