Monday’s session played out as a grind-up during the regular trading hours. Price action confirmed it was finished with the high-level consolidation structure, breaking out above last week’s high of around 3287. This meant acceleration mode for the bull train per our projections of 3280/3300 and beyond. The methodical upside grind closed at the dead highs signifying resilient strength and the same old higher lows and higher highs pattern on the micro.
The main takeaway from this session is that nothing has changed. The bull train remains quite resilient and doing everything in its power to uphold the ongoing daily8/20EMA momentum trend since October 11, 2019. Until price action actually closes below the moving averages in a decisive manner followed by at least 3 sessions below it to maintain momentum, then it’s really just déjà vu again and again. Essentially, it’s been the same old grind up structure and game plan every week now with just different levels.
What’s Next?
Monday closed at 3289 on the Emini S&P 500 as a bull bar above the prior all-time highs. As discussed in our ES trading room, one of our algo/mech systems picked up some short-term longs at the overnight lows 3270s per expectations and it looks like today is only showcasing two high probability scenarios given what occurred yesterday.
Here's a portion of our premarket ES game plan report:
