Taking a longer term look at the ES futures, I see a very large bear flag structure that has finally broken down and looks to be in the process of backtesting as we speak.
Over a month ago, we also had a bear flag structure forming that broke down on May 1st. However, despite breaking down, it never capitulated, invalidating that bear flag as the relevant structure. At the time, that bear flag looked enormous.
However, in the intervening weeks, we now have formed an even mightier bear flag. And this time, the breakdown looks so far to have taken place with far greater conviction than the last time (last Thursday's heavy selling).
So, let us watch this, and see if we do, in fact, really start some decent selling now.
If you've been bearish on the markets for a while, and you have very good reason to be, and if you've been patient, you will likely be rewarded for that patience. Keep in mind, bear market rallies often take weeks and even months to play out. Be patient, and when this is ready to roll over, it will roll over, I do firmly believe.
Once it does, I do expect to retest and even slip below, the March lows, at least initially. It will not surprise me if, in the coming months, we then also head lower still beyond even that. But, let us take one step at a time.
Over a month ago, we also had a bear flag structure forming that broke down on May 1st. However, despite breaking down, it never capitulated, invalidating that bear flag as the relevant structure. At the time, that bear flag looked enormous.
However, in the intervening weeks, we now have formed an even mightier bear flag. And this time, the breakdown looks so far to have taken place with far greater conviction than the last time (last Thursday's heavy selling).
So, let us watch this, and see if we do, in fact, really start some decent selling now.
If you've been bearish on the markets for a while, and you have very good reason to be, and if you've been patient, you will likely be rewarded for that patience. Keep in mind, bear market rallies often take weeks and even months to play out. Be patient, and when this is ready to roll over, it will roll over, I do firmly believe.
Once it does, I do expect to retest and even slip below, the March lows, at least initially. It will not surprise me if, in the coming months, we then also head lower still beyond even that. But, let us take one step at a time.