.
.
The markets reopen today after a two day closure due to Hurricane Sandy. Today is the last day of October and as the chart above shows–the entire month thus far has been an inside bar between the September monthly range of 1387.50 to 1468
.
.
.
Zooming in to the daily bars shows the short-term pullback stopping above the key 1387.50 level and as we near the open of the cash market we see that there is an opening gap at 1407.50, and ES is bumping up against resistance at the bottom of the old VST/ST range at 1416.50.
To generate significant selling, bears will need to get under 1387.50. If that were to happen, the rising LT support trend line would be the next target lower.
.
.
.
Zooming in one more magnitude to hourly bars we can see how the pros have generated a series of marginally lower lows inside of the void I pointed out under 1416.50. I count six marginal lower lows between 1402 and 1393
The early line in play is Stops and Targets short-term primary trend line at 1416.50. The short-term bias is bearish below, but would switch to bullish above.
As I mentioned above, if the provisional low at 1393 is broken that would open up a possible move to take out the stops under 1387.50 If, on the other hand, ES moves above 1416.50, the next upside target is resistance at 1424. Just above 1424 is the top of the short-term bearish trident channel where professional bears are likely trailing stops. If that channel were to be broken, the next upside target would be the previous weekly bar high at 1433.25 (weekly range shown on hourly chart above above as dark grey dashed lines at 1433.25 and 1394.50).
.
.
.
Stops and Targets’ short-term primary trend line at 1416.50 is the line in play. Short-term and very short-term bias is bearish below, but both would switch to bullish above.
…my .02
.
.