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(click image to enlarge chart)
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Yesterday’s close triggered over 500 top spotter setup signals. That is a huge number of spotters in one day, and although confirmation is required to validate the signals—the sheer volume seems to suggest something could be afoot underneath the surface. The last time I remember seeing so many spotter signals at once was near the March 2009 lows.
For those of you with Signals Matrix access, I would highly suggest keeping a close eye on that over the coming days.
On the chart above, I have indicated several waypoints to watch…
1) The spotter signal hard stop is at 1216.75. If price ticks back above that number, then this current setup is dead.
2) The confirmation number is 1207.50, that is the line below which the ES must close to validate the spotter setup signal.
3) A descending red trendline indicates the tentative bearish trident top rail. That is a line that technically savvy countertrend traders will often use as a backstop for protective trailing stops. If this eventually sells off and develops into a tradable channel, then that line should not be crossed on any snapback rally.
ES 1210.50 was the bull/bear line I mentioned yesterday as the spot where day traders would likely sell a pullback after a failed range breakout, and there could be some tight following stops lurking just above there.
Each of the ascending trendlines could produce buyers on a pullback—but the dark green trendline represents the bearish below/bullish above dividing line for the short-term trend. It could unnerve some bulls if that line were to be broken and held.
There is, of course, the potential for mischief here, since the FOMC meeting announcement is a potentially explosive event. From this morning’s vantage point, that meeting may be in the process of being front-run—but we’ll have to wait and see how things go as individual support and resistance areas are challenged.
For those who countertrend trade into setups, this may have been a good spot to take a shot ahead of a potential reversal. The spotter was an early warning, the break of 1210.50 was the CT entry and the descending red trendline is the trailing stop for what I would consider to be a reasonably well thought out countertrend strategy here.
I am not an advocate of countertrend trading, in most cases—but the bears do appear to have a potential setup working here, and so whether one is pushing up trend following profit stops anticipating a payday–or looking to potentially try to establish a new position long or short…this is an area that bears watching closely.
The line in play today (in my opinion) is yesterday’s low of 1207.50. Intraday action is bearish below/bullish above.
If the spotter confirms at the close, then the area around the short-term primary trend line becomes the first downside target. If, on the other hand, they rally this intraday—then bear stops at the red lines may be the likely upside targets.
The descending red trident trendline above versus the ascending dark green trendline below is what my eyes are presently focused upon.
…my .02
ES
.
(click image to enlarge chart)
.
Yesterday’s close triggered over 500 top spotter setup signals. That is a huge number of spotters in one day, and although confirmation is required to validate the signals—the sheer volume seems to suggest something could be afoot underneath the surface. The last time I remember seeing so many spotter signals at once was near the March 2009 lows.
For those of you with Signals Matrix access, I would highly suggest keeping a close eye on that over the coming days.
On the chart above, I have indicated several waypoints to watch…
1) The spotter signal hard stop is at 1216.75. If price ticks back above that number, then this current setup is dead.
2) The confirmation number is 1207.50, that is the line below which the ES must close to validate the spotter setup signal.
3) A descending red trendline indicates the tentative bearish trident top rail. That is a line that technically savvy countertrend traders will often use as a backstop for protective trailing stops. If this eventually sells off and develops into a tradable channel, then that line should not be crossed on any snapback rally.
ES 1210.50 was the bull/bear line I mentioned yesterday as the spot where day traders would likely sell a pullback after a failed range breakout, and there could be some tight following stops lurking just above there.
Each of the ascending trendlines could produce buyers on a pullback—but the dark green trendline represents the bearish below/bullish above dividing line for the short-term trend. It could unnerve some bulls if that line were to be broken and held.
There is, of course, the potential for mischief here, since the FOMC meeting announcement is a potentially explosive event. From this morning’s vantage point, that meeting may be in the process of being front-run—but we’ll have to wait and see how things go as individual support and resistance areas are challenged.
For those who countertrend trade into setups, this may have been a good spot to take a shot ahead of a potential reversal. The spotter was an early warning, the break of 1210.50 was the CT entry and the descending red trendline is the trailing stop for what I would consider to be a reasonably well thought out countertrend strategy here.
I am not an advocate of countertrend trading, in most cases—but the bears do appear to have a potential setup working here, and so whether one is pushing up trend following profit stops anticipating a payday–or looking to potentially try to establish a new position long or short…this is an area that bears watching closely.
The line in play today (in my opinion) is yesterday’s low of 1207.50. Intraday action is bearish below/bullish above.
If the spotter confirms at the close, then the area around the short-term primary trend line becomes the first downside target. If, on the other hand, they rally this intraday—then bear stops at the red lines may be the likely upside targets.
The descending red trident trendline above versus the ascending dark green trendline below is what my eyes are presently focused upon.
…my .02