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| ESZ 135min |
Although the ES closed up 1% today, on day 7 of the rally off the last Tuesday’s swing low, the market was wacked for 20 handles in the last hour of trade, as it approached it’s 200 DEMA, and the 6E
tested it’s 50DEMA. Ironically, the market had been enjoying a very
strong day, and still put up very good numbers on the day, with the
NYSE enjoying close to a 90% day, on good breadth( 9-1), and new highs
outpacing new lows 17-2. The NASDAQ experienced a 72% day, with
advancing shares leading declining shares by 4-1, and new highs
exceeding new lows 21-14.
Waning momentum finally caught up with the ES, as it came within 5 points of reaching the 1220 level which was previously identified as being an upside target, and an area of resistance. Although the market’s rally is still intact and not technically damaged, the inability of the market to stage a true follow-through-day, should quickly attract shorts. Support now looms below at 1180 and 1150. A break below 1150 would no doubt embolden the bears for a run at taking out last Tuesday’s low.
Waning momentum finally caught up with the ES, as it came within 5 points of reaching the 1220 level which was previously identified as being an upside target, and an area of resistance. Although the market’s rally is still intact and not technically damaged, the inability of the market to stage a true follow-through-day, should quickly attract shorts. Support now looms below at 1180 and 1150. A break below 1150 would no doubt embolden the bears for a run at taking out last Tuesday’s low.
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