Stock, Option and Futures Trading
ES Daily Chart 62 bars up 127 bars down
On the Daily chart something to keep a look out for next week is the fact we are 62 bars up from the 10/4 low and Monday will be 127 bars from the 7/8 high.
The market did break the 62 bar high on Friday but did not close above the high.
We are at obvious resistance so either:
1. We have been going sideways until we hit the 127th bar high to high (which is monday)
2. We are building strength at resistance because we have not went straight down off the 62 bar high.
We have 4 DOJI’s in a row and those can be looked at as topping candles but the thing to also keep in mind is that if the bigger chart kicks in from right here we could have a short squeeze from where we are now meaning; we could short squeeze the traders that have even just entered over the last two-three days.
Again, we have yellow bars on our Daily and Weekly charts so a big move is coming very soon. The fact that all last year there were many things that could have or should have drove the market down and we closed even on the year so that is a overall bullish sign on the markets.
Either way it goes it will be big and it is getting closer everyday to the move. Now that we have 62 and 127 on bar counts we can say that the move should happen very soon rather than later (maybe even Monday or Tuesday of next week).
If the ES closed above 1285 it will be a bullish signal. There is one more resistance above where we are at but if we close above 1285 the resistance above us could just be minor and we make it to a new high meaning; there is resistance but the bigger levels up to this point have been support so the market should blow through the resistance if we can get a strong close above 1285
PS. If you missed the Webinar for STM you can view it by going to http://www.scalpingthemarkets.com and click the webinar link on the top right tool bar. The coupons expire Jan13th