You can tell, because it almost always starts with these little rising channels which accommodate the wild swings between gains and losses and, more importantly, steer them higher. In the charting world, this rising channel is also known as a flag pattern. It’s a continuation pattern which merely interrupts the downturn until it resumes.
It’s helpful in that it provides clear parameters as to whether or not the rescue is working. If ES remains in the rising channel and recovers some of the broken Fib levels, we’ll know it’s working. If ES drops through the bottom of the rising channel, we’ll know it’s not.
This one brought ES back above the important support level we discussed on Friday, our 2947 target – which ES has tagged and/or crisscrossed about 11 times since Friday afternoon.
The usual tools are being employed to try and support futures here. The question, of course, is whether the rescue will be successful.
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