Here is an hourly bar chart showing 24 hour e-mini trading.The drop this past Tuesday to 1155 was a shakeout (red arrow) - a false breakout below the 1162 support level which defined several preceding highs and lows (lower green dash line). Shakeouts usually are followed by fast, extended moves in the opposite direction. I think the ES is now headed for the top of the trend channel I have drawn (around 1200). After a drop to support (higher green dash line) I think the market will resume its move above the 1216 level of the April 2010 top.
2 comments:
Hi carl
im wondering if the banking sector is setting itself up for a contrarian trade . specifically BAC it tested its 50 percent retracement to just about exact sentiment is bearish , it is in the news due to forclosures and volume is begining to tick higher
there was a spike coming into the low and im wondering if you could begin tracking the banking sector and possibly touch on this stock .
i do realise that individual stocks are more difficult to track compared to the indexes yet bac is at an interesting junture in my opinion and bears consideration .
time wise maybe it just goes sideways for a few more weeks yet price wise if this is a reversal in the making the 11 dollar level should hold .
joe
IMO , BAC is setting up as a decent contrarian trade, albeit with a reasonably tight stop
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