Finding the Low (Blue Bars)

In our prior post we were talking about the ES and that the 950 area would be a sell as that would potentially be the end of the 5th wave up. Since then the ES broke out hit the 950 area then dove 65.00 points to make a low at 885.00.

Notice how on the 30 min chart we had blue bars right at the low of 885.00 this gives us a high odds turning point in realtime so we known not to short after the blue bar prints. Notice how after the blue bars we had a upmove then turned back down to take out the lows. Since there were blue bars on that low we are not thinking the low will be taken out and actually want to look to take the next long signal on the smaller time frame.

The blue bars tell us when a big move is going to start and end in real time. Along with the levels we use to confirm our market outlook. If you have any questions or would like to see other charts please let us know. You can email us anytimne at trade@eminischool.com

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925 - 950 is the S&P range

For the last 7-8 days the ES has basically went sideways with the 950 area being a critical resistance level. Tomorrow we will be watching the 942.00 level as this could be the short term resistance level that could hold the price down on the smaller more intra-day time frames. The 925.00 level is now the support zone (the prior support was 875.00). The 30 min chart looks similiar to when we were near the 875.00 support zone before we broke higher. Even though the last 7-8 days has really been a non event, tommorrow could be the day where we finally get some movement one way or the other.

Some stocks like GS and AAPL have had some selling pressure on them the last few days. Keep an eye on these stocks as more follow through to the downside could lead the market lower, or at least keep the resistance holding the market down at this level.

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