ES Update

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(click images to enlarge)

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ES has attained another partials target in the ST time frame (1348.25) and has returned back to the old top spotter confirmation line at 1349.25 (from 5/2 at 1368).

ES is now up nearly 8% from the bottom spotter low on 6/16 at 1252.25 and this is now the ninth trading day of a rally from the double bottom bounce off the old Stops and Targets range bottom at 1260.  A pullback is coming eventually, but until/unless price crosses under the primary trend lines, this remains a bullish market that could have sights set on taking out the old spotter high > 1368, which would be a capitulation point for many currently trapped bears.  First signs of a pullback would be a breakout through the bottom of the light green channel.  ST trendline breakout support is at 1325.50.

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In a continuation of the ‘workflow’ posts, I have posted screen shots from Stops and Targets to point a few things out…

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On the IT tab (which was pre-selected by S&T to show that is the present ‘timesframe in play’), that target of 1354.25 that I pointed out on this post on June 29th, doesn’t look quite so crazy now. That setup called for an initial risk of 19 points to potentially make 56, and ES is up >51 as I type.

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On the multitrend tab, we can see that the S&T macro analysis was correct about ES likely morphing quickly from a Bull 9 to a fully-bullish Bull 10 rating. Not quite there, but pretty close here. If those primary trend lines cross over,  the ST timeframe will take over as the ‘time frame in play’.

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On the ST tab, we can see that ES is up +64 from the last trade entry and that it is trending above 1338.50. There is also a recommendation for stop placement for those wishing to snug up trailing stop protection to lock in big gains. The last price is in the ideal entry zone.  The potential upside gain is small for this particular trade–but that trailing stop suggestion can serve as a handy guide for those wary of selling from near this resistance target who wish to aggressively protect partials on large gains.

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On the LT tab, ES has gained 290 points, or > 27% since the last entry signal on 12/1/2010.   The recent IT pullback touched the edge of the LT ideal entry zone and some sharp traders used that as a clue for repositioning in that time frame.  Those guys got in near the spotter low and are sitting with a stress-free trade here.

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Stops and Targets is an amazing tool, and continually demonstrates remarkable consistency through bullish and bearish markets to point out the trading setups, and to keep traders on the right side of the trends.

…my .02