Saturday, January 09, 2010


ES close at 1141.5. Both daily AL and intraday AL target were hit. ES also hit the up line of a likely 5th-wave end-diagonal wedge, and two other bigger wedge TLs. Needless to say, there is a huge resistance here . Indicator wise, STO stays above 80 for 5 days now, and negative divergences are every where.

On Sunday night, watch for any pullback to initiate a gap fill trade. If market pulls back to 1136-37, watch closely for buying activity.
On Monday morning, if market couldn't hold above 1136-1137 due to lacking of buying activity, this bull run is done for certain, as breaking this levels also marks the break down of the end-diagonal channel.

Watch DoubleMA signal for initiate spy option trade.





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