|30 min SPX- showing inverse H&S formed fri-wed of last week|
The 1420-38.75 level in the ES as well as the SPX will more likely be the range until the early hours of tomorrow. Above 25 if we break over highs, clearly 1440 is the first line of defense for sellers, above is air into 1450.
Below 1420 means the price could enter the red box highlighted below and in theory could fall easily to the breakout level of 1290-1400 if the Fed and or German courts disappoints wed and or thursday.
Quite a few participants are long only and are very long though in my opinion many participants are short and or have not participated in the last 100 points of the S&P because of complacency and or skepticism. A fire burns hot, but when the fire is fanned it becomes white hot. A squeeze related to fed action could fan the fire.
|30 min ES_F – Red box is the area which prices could come volatile if 1420 fails|