ES Update


(click image to enlarge chart)


On Friday, the VST trading range was broken to the upside.

The blue trendline on the chart above represents a simple delineation line between day trading bulls and bears.

The bottom line here is that if you are VST short above that line, then you are on the wrong side of a range breakout, and that’s where little losses can sometimes turn into big losses in a hurry–if that breakout holds.

Upside range breakouts are also where bear stops are triggered and so we watch to see if the breakout is sustained, or if it reverses after the stops have been digested.

If we see a pullback, then I would expect a back kiss of the descending blue trendline to attract some attention from traders.  What happens after that touch would dictate the bias for technical day traders… long above and short below.

The line in play today (in my opinion) is that blue descending breakout trendline, presently at about 1208.  Bulls remain in control above that line on all time frames, but if bears were able to reverse this breakout and get back below, then I would start to look for signs of spotter reversal signals.

Closest bull stops are below the ascending green trendline.

Although not visible in the chart above, the next VST upside resistance is at 1238 area at a trident channel top.

All trends remain up > 1187.75

Stops and Targets ideal trades are now +263, +127, and +131 (LT, IT, ST respectively).

…my .02