Mid-Range Yet Direction Stands

ES Futures Trend Check

• Trendline Capturing Most of Price Action and Wave Direction
• Targets Reset to Lower Point - Digging for Gold in Supportive Structures
• Placing Lower Highs in their Context
• When Lower Lows become Murky
• Alternative Views

In some technical analysis circles trendlines whether going up or down tend to capture 3-points of touch.  In our case here, there are 4, and I placed the angle starting from Jan 29th 2018 to line up directly with the highs printed for today.  It acts very well in terms of following the downward slope, and I admit I'm not trying to angle my point of view to fit my interests in getting cheaper asset prices, it just fits.

The first oval marks where the lows from the prior trend were completely undercut.  The second yellow shaded oval marks where the prior lows from February to March were undercut.  Now, price started going higher each time a low was put in, which gives the bulls an argument, however more of the interim-tops are being sold with just as much or more force than the pressure buying them.  

There are many competing viewpoints

This makes conditions uncertain, because it doesn't trend in such a clean and even fashion it makes the waters murky because if there are more attempts at resuming the uptrend price would reflect a pattern that wants to reach new highs, or at least push toward the high end of the range whether its 2800 or 2875, there are plenty of bulls in the marketplace who would love to get closer to their annual goals of 12% growth this year.  

In another view a symmetrical triangle can be surmised just from connecting the high and low points, but in the end with further confirmation of this downtrend these past 2 months will probably be seen as the consolidation before the big breakout to the downside, that is the bearish point of view.  

Below you'll see the break point in October of last year with two levels at $2485.61 and $2497.12  we are watching those with great interest, from today's close that would only be a mild 7% correction, so its not that unrealistic.