A bit of a "bigger picture" look at the /ES
Well… I guess this post is a little late. I did twitter my shorts into the weekend on Friday – so if you’re following me there – you already know that I’m short. It’s been a long weekend, I’ve been busy with finals and have been buried in think script. Anyhow, as you can see form the title, I’m short both the /NQ and the /ES right now.
If you look at the chart on the left, We have some reasoable support around the 710 level or so on the /ES chart. After tweaking my chart a bit more to get a better fit on the fibonochi lines, the 710 level sets up as a very solid retracement. Not only is it a 50%, it has served as support over the past few days.
Also, the 23.6% line from my bigger fib has also been acting as resistance, now possibly support again.
My target is still in the 710 level for the /ES, quite frankly my /NQ short is along for the ride. I’ll get out of them as a pair. My stops will start to get very tight when we hit that 23.6% line at about 728 or so.
You can see that the 770/780 level is hightled on my chart as well, somewhere just above that level will is my stop out exit point. Given that we’ve had 4 consceutive days up, the odds of another one are becoming very, very small. Once we get down to the 710ish level, I’ll likely flip around and be a big raging (near term) bull. Of course, market conditions will dictate what actually happens.
