ES Update

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Screen Shot 2014-02-11 at 9.31.16 AM

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ES has made it back to the first upside target  of 1801.25 (VST) I mentioned for the IT stop sweep/reversal setup centered around 1754

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Screen Shot 2014-02-11 at 9.36.07 AM

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Price is now inside the ST ‘ideal sell zone’ (shown as a shaded rectangle in the hourly chart above) under the ST primary trend line at 1809.50.  Next resistance above (VST) is at 1817.25

The IT bulls are driving here from the 1754 stop sweep/reversal entry.  A move back above 1809.50 would flip the ST trend bullish–so that is the line currently in play.

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Screen Shot 2014-02-11 at 9.30.20 AM

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Today, Janet Yellen is scheduled to testify before the House Financial Services Committee and she testifies again on Thursday before the Senate Banking Committee.  Everyone wants to know if she is planning on taking away the ‘Quantitative Easing’ punch bowl.

As it so often happens in these circumstances, the market has been maneuvered into a pressure zone between bulls and bears–in this case IT bulls and ST bears.

The low of the recent pullback was at ES 1732, and that is the line that must be protected over the next couple of days to set up a new short-term structural (lower) low.  The last ST structural lower high was at 1845.75, so that would be the eventual level that must be taken out to the upside to break the current lower high/lower low ST bearish channel.

It’s time for the Fed Show to begin, so let’s see what sort of testimonial entertainment they have in store for us…

…my .02

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