ES Update

Screen Shot 2014-10-13 at 8.56.54 AM

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Okay, here we go!

The ES weekly bar chart above has been the ideal roadmap for the macro paradigm that has been in place since 2009 at the Obama/ARRA bottom.

Only four times since 2009 have we seen a break of the last higher pivot low (all of which are highlighted on the weekly chart above).  On three previous occasions that break was immediately reversed yielding an intermediate stops sweep/reversal around that previous low and were perfect buy signals.  Only once did we see a more significant pullback occur (to a long-term double bottom in October of 2011) and that pullback yielded the only lower high sequence in the past five years, which is marked by the descending red trendline on the chart above.

So, this is very easy right here from a technical standpoint… it is literally all about 1882.25 right here.  Price action is bullish above and bearish below from the intermediate term perspective.

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Screen Shot 2014-10-13 at 9.13.58 AM

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Stops and Targets is right on top of this, of course.  The pullback from the spotter high at 2014.50 has now achieved the intermediate support target at 1882.25 and we see the first bottom spotter signal (unconfirmed) on the screenshot above.  Now, if it were me pulling the levers I think I might want to eventually dip down intraday to try to trigger index spotters as well–but we’ll see how it goes.

Next intermediate support is at 1877.25 and then we get another support void down to the 1843.75 area (short-term support) and then the next intermediate target lower would be at 1824.25

Head’s up right here at 1882.25 everyone.  This line is what the pros have been after from the spotter top, so it is ‘game on’ now in multiple timeframes.

…my .02

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