I made this one extra large for today to show the ES e-Mini S&P 500 futures daily chart
What brings me to this chart today is the formation of Dark Cloud Cover, it happens when the real body is long and placed high above the "indecision" candle and could be a reversal. Bearish reversals almost always need a confirming element like following bearish candles and follow through
The chart examines the extend of this most recent facet of the rally the line measures everything from 9/26 to today's height at 2665.25 ES, the 6.75% advance came after this short contraction from 9/21 to 9/26 its the tightest range of slightly bearish action, from there the red candles were fewer and even some had a shallow amount of downside penetration.
"Wave 5 Somewhere" denotes the levels where it appeared the trend was starting to end, but it was quickly overtaken by last week's daily ranges which varied from 9 to 46 points, but counting waves with the Elliott wave format has not been working well for most people over the years
The range in total was 31.5 points and was a commanding sell off where the gap overnight was clearly overtaken as if the pop never happened.
The expectation if the sell off takes hold is that the range expansion would lead to similar price swings that happen with the same kind of magnitude and depth. There sure are plenty of good buys to be uncovered if the market would only correct and discover value.
No comments:
Post a Comment