After the silent grind higher from 2 weeks ago, which had us question whether it was the calm before the storm, last week didn’t bring the storm just yet. But the market did retreat from the high registered the previous Friday. That high was breached though on Monday and Wednesday on ES and also on the cash index on Wednesday. That seems like a typical flat formation (for those EWT inclined), which would mean that at some point the market would need to take out the ATH once again.
Looking at the cycles the weekly still doesn’t show signs that a turn is in. The slight pullback we had last week was not enough to paint a resistance level on the weekly and it also didn’t change the directionality trend which is still going up.
The daily cycles registered an interesting development. A resistance level triggered also on ES which was more respected than the one which triggered on YM a while back. The market pulled back from there and found support at the mcm-MA. The directionality tool on ES started to move down also, while the one on YM is still at the maximum point. So there are signs that the market is approaching exhaustion, but for the exact turning point to be confirmed we need to look at the shorter timeframe cycles.
The 288 and 480min cycles show You need to be authorized or upgrade to see this content. Please go to http://mcm-ct.com/membership-signup-dev-2/ to sign up.