After nailing Monday’s downside target of 1754.50 a little late, ES tagged yesterday’s interim upside target of 1780 right on schedule: 1780 @ 4:30. It leaked higher overnight, but is back to that level and threatening to complete a little H&S Pattern that might drop it 6-14 points this morning.
As expected, ES and SPX both reached the 1.618 extension of their drops from Sep 19 to Oct 9 to complete Crab Patterns.
A typical reversal after a Crab Pattern completion is to the 1.272 or lower: 1.0, .886, .786. So, I’ll be watching the channel lines quite closely to see if this is a bump in the road or something more serious.
UPDATE: 2:25 PM
It’s looking more like a speed bump. ES obviously leaked up past the 1785.25 high, meaning we’re probably going to need to resolve things to the upside before any correction can commence — if it does.
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