I have been mentioning the 1400 level in the S&P e-minis for a few days. You can read the posts where I discussed that level here. I’ve been looking for a pullback to the 1400 level for a buy opportunity. That came this morning.
Here is the 3,000 Tick Chart of the S&P e-minis with the Weis Wave. The 1400 level is highlighted. Note how we became oversold in the trend channel at that level. Despite what looked like a big move down, there was no real supply that came in. Once again, the Weis Wave tells the true picture of the selling and buying. The hourly (not shown) looks like an ordinary shakeout.
A nice entry was made at the green arrow. Look at how demand entered the picture just prior to the entry. This entry is also a test of the intraday Spring of yesterday’s low (1401.50), making for a choice trade setup. We see nice follow-through to the upside – exactly what we like to see in this situation, confirming the Spring, the hourly shakeout, and setting the odds for higher prices this week, as long as we hold today’s gains.
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