ES Update

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ES is still feeling around for a VST/ST bottom, and we have had a lower poke down below the VST bull/bear line at 1421.25 to touch confirmed support at 1417.75 and to test the rising dashed support line from the 6/6/12 low of 1248.50

There is one more downside VST target left at 1414.50 and then a void of support down to 1398/1400 area–so if this is going to bounce, we could be getting close to bullish capitulation.

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The trading range chart above shows the IT/ST top at 1468 and the pullback since.  I have extended the VLT trend line to show a possible downside target for a back-kiss off that trend line breakout if ES continues to drift lower.  In the short-term, it is all about 1424 here as we watch to see if the pro’s idea is a ST stop sweep reversal and back to new highs–or a continued push down to lower targets.

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Friday’s close under 1424 was the signal to take profits for ST bulls from the last entry at 1320.75 on June 29, 2012 –and so that outstanding trade is now retired for a partials direct hit at 1467.50 (+146 points and just .50 from the top) and then the remainder sold at 1424 (+103 points).  That was another great trade setup from Stops and Targets, but the ST trade will now be reset here at 1424 depending upon what happens going forward.

…my .02

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