The chart above shows the broken counter-trend bear line that I mentioned yesterday. You can see how that initial breakout (highlighted by a yellow oval on the chart above) triggered CT bear stops followed by a pullback to a back-kiss of the trendline (to shake out momentum buyers) before heading higher.
The purple ST trend channel top rail has now been broken, and the next band of resistance between 1158-1165 is shown by the yellow rectangle.
The top rail of the VST channel is just above current price levels and is shown as a gray line on the chart above lining up approximately with the top of the resistance band.
I am seeing divergences in momentum on the daily bars, so watching closely to see how this trending breakout holds up now that most bears have likely been stopped out.
ES 1141 is the first recommended partials stop in S&T for ST trades and the closest bull stops are likely located below the bottom rail of the trend channel, presently at around 1128 area.
I am watching for possible spotter signals now that most bullish objectives from the February lows have been achieved.
ES has now moved back into a resistance void left in the wake of the 2008 crash. With no close by targets to work with on higher time frames, we could see either a fast upward move—or another stall and pullback to possibly continue the stair-step pattern we have seen since the March 2009 lows.
The trend is your friend until it ain’t…
All trends remain up > 1122. Stops and Targets’ ideal trades for LT, IT and ST are now +210, +74, and +78 points, respectively.