Big move coming, don’t let your guard down
Last Wednesday morning we warned of a
pending directional break in stock markets soon… quite possibly that session.
Indeed it ramped higher all day long, as one would expect. Since then, price
action in the minis has essentially gone nowhere but sideways inside a very
choppy roll. Time to elevate the “alert status” for another big-trend move
coming to a stock market near you soon.
ES (+$50 per index point)
S&P 500 emini session on Monday was another
sideways dance. That makes three in a row where price action has chopped hard
thru a meager 10pt total range. This will not persist must longer… directional
breakout pending soon!
ER (+$100 per index point)
Russell 2000 shows the same story. Past three
sessions have been straight sideways in very gyrational fashion: surge candle
after surge candle going in opposite direction rolling thru the range. We should
see a decisive break soon, quite possibly today.
This Session:
ES (+$50 per index point)
Price action has consolidated near upper
channel resistance for the past three sessions. A daily close above this mark
sets up run toward 1240 and then 1250 magnets from there. Likewise, drop to or
especially thru that 1200 floor would be extremely bearish right now.
ER (+$100 per index point)
Small caps have painted three consecutive
candles of indecision following last Wednesday’s upward grind. Pause to refresh
the bulls, or new lower high? Only time will tell. Thursday highs are the next
real hurdle to clear, then 680 and 690 easily within reach above.
Summation
There isn’t much new to opine that hasn’t been covered recently.
Awaiting the next directional breakout, where it will pay handsomely to follow
the trend when it unfolds. When this short-term range inevitably breaks, stick
with the trend signals and prepare to ride them out for solid gains all the way.
Trade To Win
Austin P
(Weekend Outlook trend-view section…
open access)
Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets.
Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.