(click image to enlarge chart)
1) Red trident channel top rail just above the VLT trendline is the ‘oops’ line for countertrend bears. If price climbs back above there, then the VST countertrend bear trade is likely wrong–otherwise that line serves as initial bear trailing stop line for countertrend entries for the most aggressive countertrend traders.
2) Early bears who have been squeezed since 9/23 remain trapped above 1120 area.
3) ES 1117 is where the bulls will begin selling, if taken out to the downside. That would be the first technical break for VST bears.
4) ES 1111 is Stops and Targets’ short term primary trend line and first target of a pullback here, should the latest top spotter confirm.
Ideal VST trade remains long from 1035…but with a wary eye on the progress of the countertrend attack using the lines mentioned above. ES 1117 – 1120 area remains the key.