Probably because most indices are at their february highs which represent a potentially strong resistance area and the market's have been in straight bull mode during the recent days - not too probable that they'll run through this area without some sort of a correction first. But that's just IMHO.
ES Journal Archive (2006 - 2008)
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Probably because most indices are at their february highs which represent a potentially strong resistance area and the market's have been in straight bull mode during the recent days - not too probable that they'll run through this area without some sort of a correction first. But that's just IMHO.
On the larger time-frame I just price action, apex82 has his own process for determining overbought/oversold and market turning points.
Now, I'm not saying it's turning now mind you, I'm saying ithis latest move is currently very overextended and has delivered, oh, lets see, about 25pts and counting (damn, that sounds delicious) of profit to the position players (ES has all the volume now, not the Big S&P contract, from the retail and the instutitional market ... has for a couple of years) and they'll be looking to cash in their chips pretty soon.
JJ
indexs are looking poised for a rally at these levels. I would trail in my shorts if you are short. Maybe one more low in the er2 into the last zone and look for a washout with an immediate reversal. That is a great sign that shows the move is exhausted and a reversal is a high probability.
If I had been in front of my screen instead of out taking care of banking and getting some lunch, I'd be Short ES @ 1478.50.
That's OK, I needed to TCOB, I need some free time.
If they can hold yesterday's highs they might rally, otherwise they may consolidate before the sell-off.
Ultimately, price action will have to dictate everything.
JJ
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