I've drawn a lot of trendlines in my life and so many of them have turned out to be meaningless. The truth is that trendlines matter only when enough people (or machines) see them and are willing to trade off of them. I would say the more pivot points on a trendline, the more meaningful it is. And sometimes even after a trendline is broken, it stays very meaningful.
This is exactly the case with the trendline we see here on this S&P 500 futures chart. I have highlighted 6 times where this trendline has served as a pivot point in only the past 8 sessions! As I write this, it seems as though we are pivoting on it once again in the thinly-traded overnight futures session.
As for predictions, I believe the bullish inverse head and shoulders that I highlighted last week (and again on this chart) is still very much alive. The market is in the process of digesting some ugly news, but bearishness is still very high. I don't think it's time for us to test the lows quite yet.
Because of this, I've drawn a small guess as to what I think might happen in tomorrow's session. If we find ourselves sitting right on the trendline at the open (around 2432), I will be a buyer of the market while keeping a very tight stop.
No matter what, the line above has proven its importance and it should be paid attention to until it becomes irrelevant!
Buy the open if we are at or near 2432
Target 1: 2480
Target 2: 2600 (from prior call)
Stop: 2420
This is exactly the case with the trendline we see here on this S&P 500 futures chart. I have highlighted 6 times where this trendline has served as a pivot point in only the past 8 sessions! As I write this, it seems as though we are pivoting on it once again in the thinly-traded overnight futures session.
As for predictions, I believe the bullish inverse head and shoulders that I highlighted last week (and again on this chart) is still very much alive. The market is in the process of digesting some ugly news, but bearishness is still very high. I don't think it's time for us to test the lows quite yet.
Because of this, I've drawn a small guess as to what I think might happen in tomorrow's session. If we find ourselves sitting right on the trendline at the open (around 2432), I will be a buyer of the market while keeping a very tight stop.
No matter what, the line above has proven its importance and it should be paid attention to until it becomes irrelevant!
Buy the open if we are at or near 2432
Target 1: 2480
Target 2: 2600 (from prior call)
Stop: 2420