WEB DISCUSSION 2

It's Friday, Keep It Short and Simple.


TODAY:  A LOOK AT TF & ES

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The webinar was open early to the chat room members, and we had a discussion on TF.   There was a MAXT developing at the SH Target (BOT) b242-43.   At the start of  b244, the thought was we had the MAXT and the SH BOT hold, both suggesting the bar would push higher and that a long trend was expected.  An excellent place to enter your long.

The test and FBO at the L-BOT was a MAXT  followed by a LH at the open.  You should be reading short at the L-BOT FBO, and certainly by the LH.


ES AM

We see two MAXT's  in the pre-market establishing a bear channel, followed by a MAXT low at a prior BOT level.  The expected reversal trend was BO of the channel and we see a control bull bar developed at the SH Range (BOT).  The MAXT was a long, the channel BO should be considered, and the BOT reversal should be viewed as a long.

As we use the globex, there were two scenarios for the open, and both had support.  1.  a HL above the SH BOT and run higher; 2.  the trend continues down to complete the H&S pattern.  #2 was favored as we had a FBO at the upper BOT and price was staying below the 50% level of the bear control bar b278.  At the open, #2 plays out and we see the EMA acting as resistance.  BY b5-6 the 20 EMA crosses the SH BOT making the market short in the lower trading range (LTR).  The failure of b28 to cross the bear CB-50% was critical to the bull move.  We broke for lunch looking for more shorting.

ES PM

The afternoon trading in the ES was focused upon the 50%  CB-entries, with targets 1 and 2 for the trend move.