A Hourly and Daily look at the $ES_F / $SPX
Since 10/18/2012 we have seen the S&P 500 drop almost 60 handles as 1401.75 printed this morning on average volume. This drop has been foreshadowed by the break of the purple dotted uptrend line from June 5th of so lows (1254).
This break (highlighted by the white oval) has clearly been documented by trend followers per the uptick in volume the day the dotted line failed for the second time October 23rd.
Will 1400 hold? probably not if 1401.75 fails to hold, next up it 1380 as a plethora of stops i am sure reside at the 1400 level and lower, both macro buy and HFT sell. The 1400 level has quite a bit of volume associated with it as it was the magnetic level of choice from late july until the break higher over 1408 in September.
|Hourly ES_F ( notice the white oval) and the break of the purple dotted line.|