“This update has been neither cryptic nor ambiguous in its public announcements of a crucial deciding line in the tug of war between bull and bear market forces in the vicinity of 1440 on the E-mini S&P futures.” That was the first sentence of last week’s update, and with the exact high on the ES last week being 1440.24, we feel strongly that our target has been validated, as unlikely and unattainable as many considered it just a few weeks ago.
The chart above shows the action off our crucial bull/bear line, and the weekly close at an important number we’d been watching on the way down. As you can see below, we had a target at 1387.5 going into last Friday, which not only did prove to be temporary support on the way down, but has now become the resistance that halted Monday afternoon’s rally.
We’ve continued to rely on our proprietary target numbers, using them to define trading ranges and potential breakouts or breakdowns. With the market looking ready to lose 87.50, we put our fate in the hands of TTC’s proprietary trend cycle chart, below. After weeks above the support/resistance line, the 60-minute trend oscillator finally reached the crucial do-or-die level, suggesting either support was near or else a much larger downside move was preparing.
Of course TTC members had the advantage of real time chat room updates and daily posts that provide much more insight than what is available in a weekly update. For example, members had our very important support line at 1375, which after a several attempts, did manage to hold the declines on Monday. And, as you know, the market proceeded to rally from there exactly into our existing line at 87.50.
Our 1440 target has been described as a bull/bear line because it is the area where the market will reveal whether it’s a bull or a bear, regardless of any preconceived notions. With last week’s price action looking pretty emphatically bearish; no doubt the most bearish out there are expecting to see a huge 3 of 3 crash. But it wouldn’t be the TTC way to assume the top is in, or that the world must fall apart from here. Going forward we will be looking to see if the initial rejection at 87.50 holds, in which case a crucial number exists at 1360, or if we can advance higher, which will bring some of the recent numbers back into play. But with the market continuing to recognize our numbers, we will continue to trade them and use them to read the market’s intentions.
If you’ve been making money off this weekly newsletter, or think you could, please note our doors are closing to new retail membership next Monday and after that, these updates won’t be nearly so regular. Unless you’re a member, you won’t have our proprietary indicators and target numbers. But members already have our counts and targets and will continue to be updated in real time and with intraday posts to navigate this crucial time as the market evolves.
Have a profitable and safe week trading, and remember:"Unbiased Elliott Wave works!"
Dominick MazzaTradingTheCharts.com
This update is provided as general information and is not an investment recommendation. TTC accepts no liability whatsoever for any losses resulting from action taken based on the contents of its charts, commentaries, or price data. Securities and commodities markets involve inherent risk and not all positions are suitable for each individual. Check with your licensed financial advisor or broker prior to taking any action
