ES Update


Screen Shot 2013-04-05 at 1.32.58 PM



Screen Shot 2013-04-05 at 1.29.50 PM


I have added a screenshot from the S&T short-term time frame and an updated VST chart above to show what is going on here…

After several probes into the resistance void we finally got a short-term counter-trend sell signal at 1558.75 and the target of that short trade was the top of the ideal sell zone between 1529.50 and 1536.  Today’s intraday low at 1533.25 has accomplished that initial minimum target (along with tagging intermediate-term trendline support).

The pros got eight days of close-in VST bull stops built from the sequence of marginal minor highs squeeze I pointed out.   The pullback tag of the IT trendline also gets those intraday trailing stops underneath–but we still haven’t flipped the short-term trend, so long as price stays above 1529.50

The initial upside target from the ideal buy zone short-covering/reversal ST buy target is a retest of the counter-trend sell signal at 1558.75.  So, though the past couple days action seems bearish to many, nothing structurally has changed yet–so long as we continue to trade above ST support at 1529.50.  On the other hand, if that level is taken out in subsequent trading we will get our first trend flip.

Still all about short-term primary trend support at 1529.50.  If today’s low at 1533.25 can stick, all minimums have been met for a potential new higher structural low.

Hope everyone has a great weekend and we’ll take another look at how this ST setup plays out next week.

…my 02