The ES hourly chart has put in a Positive Divergence. This does not mean that higher highs are expected, but we should look for a possible rally. The fact that the SPX is also showing this in its intra-day chart shows a strong bias for an upside for Friday. Couple these divergences with a 60min support of the 200MA which is also the 75 daily MA and you have yourself a good support.
All bets are off if the signals in the intra-day chart pushes back below the OS range as this usually becomes risky for more accelerated downside move.
I also failed to note above that the ST has turned down.. So I treat this as a scenario of Downside trend with a unconfirmed rally (or corrective rally). This round belongs to the bears in my opinion.
MT: UP
ST: DOWN
PA: NA
No comments:
Post a Comment