ES Update

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Screen Shot 2014-07-28 at 9.38.27 AM

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On Wednesday we get the newest FOMC proclamation at 2 PM ET

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Screen Shot 2014-07-28 at 9.51.26 AM

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The pros have parked the market in a slightly expanded range between 1942.50 and 1985.75 after having run the stops on both sides of the previous range between 1945.25 and 1978.25

As I mentioned previously, running the stops on both sides of a range is the most ruthless move the pros can make, so get ready for the next shock and awe move…

We got the expected counter-trend sell at 1978.25 after the stop sweep/reversal setup that I pointed out in my last post, and so now we are waiting to see where that goes to the downside.

I pointed out two preliminary VST trend channels recently and the pros banged along the top rail of the bearish channel for a bit before the breakout that led to the topside stop run.  As I type, we are seeing a dip to test the bottom rail of the bullish channel, currently at 1963.75, which was the first downside target of the countertrend sell on the hourly bars.

When you have a channel inside a range, the range often wins–so let’s use 1963.75 right here as an intraday bull/bear line.

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Screen Shot 2014-07-28 at 10.17.09 AM

Stops and Targets is looking for a pullback to 1955 area as the next ST target lower.

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Screen Shot 2014-07-28 at 10.04.58 AM

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We have a new weekly bar forming and so we also have a new minimum pullback target to set a higher low in the sequence.  That minimum pullback number is now set at 1942.25 for FOMC week.  If we get a sustained run lower after  break of the trend channel bottom rail, that would be the downside target.

It’s all about the FOMC announcement this week, so let’s see how the pros manipulate the market ahead of the pronouncement and proclamation on Wednesday.

All trends are up > 1942.50, but we are in a counter-trend sell pullback currently.  As I mentioned above; 1963.75 should work as the bull/bear line intraday, as we watch the setup going into the FOMC on Wednesday

…my .02

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