ES Update

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Yesterday’s pullback low was a direct hit on the Stops and Targets long-term primary trend line.  You may remember a recent multitrend analysis from Stops and Targets pointing out that a new macro bull market will not close below that rising long-term support (currently at 1219)…

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Yesterday’s low also lined up with the bottom of the green trend channel.

To use an American football analogy… the bears are in the ‘red zone’ here between 1208.50 and 1249.75 (the ST trend line break) and bulls have their backs to their goal line at present.  For bears to take control of the macro trend, ES will need to break and hold below 1208.50… which is the ‘goal line’.

All S&T primary trends are up > 1231.50

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Pulling back to look at the ‘Big Picture’…

All bears who shorted inside the old range (shaded yellow on the chart above) remain trapped above 1224.  That was the squeeze target from the 1068 low and it has continued to provide support on a closing basis since the 10/21 range breakout that started the bearish capitulation process.  Squeezed bears are guaranteed buyers.  For the pros, it is just a matter of maintaining the pressure long enough until trapped bears eventually cough up their IOU’s and buy to cover those losing positions… which the pros who accumulated near the lows will be more than happy to sell.

…my .02

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