Looking at the ES on a daily chart we have the downward sloping 200 day moving average that closed today at 927.50. We are sill in the wedge on the 30 min chart and today we did not clear the 915 level again, the high that was made today was 909.00 with 910 being are upper level on the day. We are slowly making low highs on the 30 min, but those lower highs have not been confirmed by taking out any of the 30 min lows around 880.00 -875.00 area.
The daily chart looks as though we could possible be nearing the neckline of the Inverse Head & SHoulders pattern. If the market stalls out here and starts to re trace we will keep an eye on this pattern. If the pattern does hold at the shoulder line there could be great oppurtunites in the weeks ahead.
If this is the 4th wave which is corrective we still have the chance at pushing higher , but like we waid before we would be a seller of that rally. The upper level we would be looking at if the market broker higher would be the 940.00 level.
Until we break one way or the other it is hard to initiate a fresh position long at these levels. There are some individual stocks poised to make a move higher that is the only reason we still feel as though we could make one more run to new highs on this move. We are keeping a close eye on the 30 min wedge to see which way we go at this level. The 200 day moving average on the 30 min chart has flattened out today which means we should get a move one way or the other very soon.
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