I said in Sunday Night’s post (see that post here) that I anticipated the US Stock Market, as represented by the S&P e-mini futures (ES) would pull back a little. I had mentioned to look for a pullback into the 1460 area for Monday. Well, we didn’t quite get the full pullback on Monday, but did today. The market came down just under 1460 to a low of 1456.50 and then held, springing yesterday’s low for a good rally into the close.
A Different Chart
One chart I like to track is the 480-minute chart. This is a bit of an unusual chart in that each bar is eight hours in duration. In the near twenty-four hour Globex market, there are three 480-minute bars each day.
The 8-hour chart is a very useful chart to see into the daily moves, without getting lost in the details. It is also useful in assessing the selling and buying within the swings, or waves. For example, the drive up to A shows buyers clearly in control. The pullback to B was essentially a straight-across lateral move until the dip at the end that formed a Spring. The wave up to C showed buyers dominating, and the pullback to D was choppy, with lots of overlapping price bars — hardly a sign of supply.
The chart also highlights today’s Spring off of yesterday’s lows quite nicely, along with the positive response to the Spring.
What I Anticipate For Tomorrow
For tomorrow, I will look for continued positive response to today’s Spring with a drive up above the 1471.50 level. Should that not materialize and we instead see the market driving down below today’s low, then we know something has changed and the pullback is not over.
Free Webinar Tomorrow
Tomorrow (Wednesday) at 5:00 PM Eastern Time I’ll do a free webinar on the Wyckoff Method. I put the slides together this weekend, and I think you will find it of solid, practical value. We’ll be looking at reading the market bar-by-bar, trading stocks, applying market structure in your trades, trading the British Pound, using multiple time frames, trading the grain futures, and applying wave analysis with the oscillator I use, and trading the S&P e-minis. There is quite a lot packed into this webinar, so you might not want to miss it. Register at this link, and we’ll see you tomorrow:
Free Webinar: New Year, New Start Registration
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