From the weekend update, we closed at 2086ES.
On Sunday night, we opened at 2091 — higher than I expected, but there were continuous red candles from there for the next several hours — then we started to get back into the zone between the two red lines above.
Wave 2’s or b’s are allowed to do that — they break slightly above resistance, but then they fall back down. From 2091, we broke the prior lows but then went back up to test 2086 — then went to 2071 –and then coiled for some time in the upper 2070s.
Today’s chart doesn’t look too different from the weekend char. We are still within this pink channel. Actually, we broke the 2075 support and went to 2071 -but then we went back into the channel. It seems we have broken support multiple times only to pop back towards the top of the channel — multiple times.
The question now is whether the resistance in the 2086-2089 region will hold overnight. Right now the wave pattern seems not as clear as it has been these past few weeks. Today and Friday’s action has been a bit all over the place.
And the Russell and Nasdaq seem to have reversed roles. Russell was super bullish into Friday’s close but today it was the weakest. The opposite was true for Nasdaq – which was weak on Friday but strongest of the 3 indices today. We’ll need to let it play out to get a bit more clarity.
This chart is a little bit cleaner than the S&P.