Top chart is a daily chart of the ES, showing the Fib retracement levels off both the 1040 low and the 1084.50 previous low. We had a 23% fib level that got hit this morning and called the low of the day to the tick! Prices reversed and we were able to close above both the midpoint of today and the IB high. As long as 1142 holds I am anticipating some follow through on today’s closing action.
Bottom chart shows the 30 minute bars of the day session only (9:30am – 4:15pm). The 23% fib was also confluence for the -61% range extension support (number 1 trade). Made for a great long entry on first touch. The number 2 trade was the first test of the IB low, great short entry on first touch. Number 3 trade was the 50% pullback and the line in the sand that the bulls needed to defend in order to protect the low of the day from being broken to the downside.
As long as 1136’s hold I have a target on this long trade of 1167’s, the market will reach 1220’s or more by summer, summer, summertime:)
Remember also this is FOMC week, it can get rather crazy especially from Wed 2:15pm until Friday close. Trade safe!