Just a simple post with two simple charts. It does not take much to explain where we are right now. For you seasoned folks this is a nothing post, but for thsoe of you that want to understand where we are read on.
/ES daily 1 year - Here is the P2 bull market rising wedge. A few things to notice. First, The red P2 support line. Next, the Pink Bear Market top trendline. Next the sky (Carolina) blue New lower support line. Next the 50ma and its relation to price. Finally the negative divergence in the RSI indicator.
/ES daily short term - Same chart as above, but covering just the last 4 months. OK, zooming in you can see the interaction with all of the support (50ma and red P2 support especially) even better. I have added what I think is possibly the final wedge of the bull market run (gray wedge). One more touch of the top line or a slight throwover should do it. When the red line and the 50ma go that should be it. One word of caution to the bears, look out for the backtest of the pink bear market top trendline could fool some. It is just something to keep an eye on.
GL out there this week. Hopefully we'll get some good action. This sideways crap is driving me nuts. I'll have more detailed stuff this week. At this time everything is calm and no red flags are flying.
Happy holidays!
