I am a bit under the weather fighting off some vague illness, so I slept in this morning to miss this nice downdraft! Oh well, no worries. At least I am feeling better.
Current Market
A week ago, I noted supply was beginning to show itself on the longer term charts. I suggested that traders watch the weekly chart for a poor close. (You can see that post here.). Last week’s close was below the prior week’s high – more negativity. This week in the futures, we were unable to make a new high along with the cash market. We are now seeing the result of this slowly building effort.
You can see on this weekly chart (this is the cash market with the NYSE volume) that supply is now obviously hitting the market. All the signs were there.
Where is the market headed? A first target will be the 1380 to 1370 level in the futures (ES). It could go lower, but it is too early to factor a deeper pullback. Note, too, we are in a strong uptrend. The odds favor that a pullback here will set up long swing trade opportunities when it gives signs it is over.
Deep Practice Notes
A couple of quick notes: Deep Practice will be held tonight rather than our usual time on Thursday. Helen set an email earlier. This is just a reminder. Also, we have plans for David Weis to visit us in Deep Practice next Thursday (April 12). He has some new things to show, so that will be a very good night.
Chart Reading Mastery Tonight!
Chart Reading mastery starts tonight at 4:30 Eastern Time (New York time). Last chance to get in and be a part of what promises to be the best of this highly acclaimed course yet! As a bonus, we have added an extra session to go into depth on the sweet spot of trading: trend trading, making CRM even more valuable. Click here for info and registration: Chart Reading Mastery
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