Weekend update

Well , 2 things happened , but as usual with Mrs market it happened in an unexpected way, the ES1067,5 level we were expecting after the bounce occured today before any meaningful bounce (although we did have a 23 ES points bounce today , but it was smaller than expected).

Now, the path looks more complicated because market needs to retest higher levels before more downside , so it may need to backtest ES1112-4 level from ES1069 which is a long ways. Anyway, it seems the most probable scenario

We will post updates of FTSE setup tomorrow to follow it up since we still believe is a valid indication of what other international indices will do in the short term.


Some charts as promised:

Overall view (ES)




Close up, daily view (ES)



DJ Trans (daily)





Nasdaq (daily)


SOX daily


Russell 2000 daily



OK, now one important guy that DID NOT break its channel, and might well be a clue

DJ Industrials daily