When the chart "pings" off an important channel line, that gives a lot of credibility to the channel. Futures ES is shown here, with a perfect ping off the Bernoulli 133 channel line extension. Bernoulli channels (my creation) are like Fibonacci, but they take into account uptrends and downtrends, i.e. headwinds and tailwinds, organic buying and selling amidst the trading moves.
As predicted a few days ago, I expect a move to 1700 to the Bernoulli mid channel line, the B50.
Drop a comment, like to see some discussion and chat in here.
I am long SPXU and still am taking some heat, but think ES 1675 and potentially way lower is not far off. That the ES went down to 1640 not long ago mattered. Left a very big exposed tail wick, and just looking at chart history, those kinds of wicks are bullish if it is a long tail, yes, but ultimately they get re-tested.
ReplyDeleteI am thinking maybe 1730 this week, then maybe 1715s?...1700 would be nice but I don't know if that will happen. My guess is that another descending broadening wedge is put in place and more upside hits this month. Great blog, by the way!
ReplyDeleteAh yes, the ultra short "long". Ill close my puts around 1700 and then reassess if 1700 breaks down, then lower downside targets make sense.
ReplyDeleteThanks! Time will tell, I am thinking another week of downside, get the bears salivating, and buying puts, and then ramp into expiry the following week.
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