ES Update

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Looks like Stops and Targets’ IT resistance line at 1248.50 was the spot to take partial profits…

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That lines up favorably with the VST target at 1244 from yesterday’s chart.

Initial VST support is at 1225 and VST bulls are fine above the trend line breakout at 1212.75, which lines up favorably with Stops and Targets’ primary trend lines at 1214–and the VST bull/bear line at 1195.50

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The daily bar chart above does a pretty good job of showing the ‘big picture’ configuration.  Four timeframes are represented by shaded rectangles to show the compression of ranges within one another.  The smallest rectangle represents the VST and shows why I say that ‘VST bulls are fine above 1195.50’.  If that were to break down, the next major target for bears would be 1141.75.  On the other hand, if 1266 is taken out to the upside, that would trigger two time frames worth of stops and then target 1283.50 (IT range top) next.  Lots of pundits out there are getting worked up about things–but this market has been coiling in a tightening range since the October bottom spotter low at 1062.25 attained the IT target at 1283.50 (which has set up the current IT trading range).

The pattern since 1283.50 has been lower highs and lower lows–but time is the enemy of bears who have been looking for a continuation of the breakdown that started in May at the ‘Bin Laden high’ top spotter signal.

Nothing really important starts happening from a trending perspective until either 1266 or 1195.50 breaks…

…my .02

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