Are We There Yet?

Alright, this is getting annoying and I can literally hear the question rattling around in your little chrome plated skulls:

Well possibly – but I have an inkling we may have to endure a bit more of this. Let’s look at our map:

Clockwork Orange has us push us lower straight away as we nailed my initial 1060 target. Soylent Green has us screw around a bit more to complete a b-wave and then pull up hard into a gap fill at 1067. From there we’ll drop even harder, so the difference between those two scenarios is almost academic for long term traders. You ADHD suffering swing traders however should take note.

Both scenarios have a fair chance right now, especially since we just breached a pretty persistent 1051 support line on the ES futures. The Zero readings on the way up have been flat as a flounder, thus supporting a mere corrective move.

The long term trend continues to look solid. However, I would enjoy seeing longer red candles at this point – we are dangerously close to the zero mark on this histogram. But as long as we don’t push into green and expand we should be okay. If anything changes on this chart I will let you guys know immediately.

Don’t over think this – there is not much to do. You are not smarter than the market – no matter how much information you collect and how many charts you look at. We can only do so much in order to determine the odds. After that it’s up to the market to point us in the right way. So far it continues to point down.

UPDATE 12:00pm EDT:

Zero subs probably understand the meaning of this – we just played a very nice H&S formation on the ES futures.

Prost!

Mole