ES green lit - but is something bigger playing out?
Last week ES gave us a welcomed sign that a local temporary bottom is in place as we are accepting higher prices.
The week before last, price balanced in the mean (Red level) and we stayed skeptical and patient waiting for the appropriate signs to get long. Last Monday was the signal, as the day's price action completely engulfed the back-and-forth balancing of the week before. Wednesday we raised an order to buy a strong support level indicated by many clustered opens and closes. The order was filled on Thursday's open and I continue to hold for a full profit target. Closing early or adjusting stops or targets is NOT ALLOWED with my strategy. Ride or die.
Looking into this week, bullish is the theme. Price is verifying levels appropriately and making healthy pushes higher. Closes above 3800 would be a very good sign for the bulls. Closes below 3680 will be problematic. Keep in mind we have lots of interest rate discussion this week from the ECB and others, but I tend not to read much into them. They usually are already priced into the market and serve as fuel to profit targets in my experience.
On a bearish note, I would not be surprised to see a flash-crash style test of the 3600 low to form a beautiful textbook head-and-shoulders bottom here. It may stop me out of my current trade, but circumstances pending, may setup for much more profitable trading back to 4000+. I will not be trying to catch that bottom, but rather waiting for pullbacks on the (price action verified) path back up.
Let’s see what happens! Exciting week ahead for this trader! Good luck!
The week before last, price balanced in the mean (Red level) and we stayed skeptical and patient waiting for the appropriate signs to get long. Last Monday was the signal, as the day's price action completely engulfed the back-and-forth balancing of the week before. Wednesday we raised an order to buy a strong support level indicated by many clustered opens and closes. The order was filled on Thursday's open and I continue to hold for a full profit target. Closing early or adjusting stops or targets is NOT ALLOWED with my strategy. Ride or die.
Looking into this week, bullish is the theme. Price is verifying levels appropriately and making healthy pushes higher. Closes above 3800 would be a very good sign for the bulls. Closes below 3680 will be problematic. Keep in mind we have lots of interest rate discussion this week from the ECB and others, but I tend not to read much into them. They usually are already priced into the market and serve as fuel to profit targets in my experience.
On a bearish note, I would not be surprised to see a flash-crash style test of the 3600 low to form a beautiful textbook head-and-shoulders bottom here. It may stop me out of my current trade, but circumstances pending, may setup for much more profitable trading back to 4000+. I will not be trying to catch that bottom, but rather waiting for pullbacks on the (price action verified) path back up.
Let’s see what happens! Exciting week ahead for this trader! Good luck!
