actio-et-reactio
Balance is but a brief transition between extremes.
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Tuesday, January 04, 2005
ES Daily tea leaves
2005 isn't living up to bullish expectations just now, as the ADVol study in the prior post, and recent price action shows.
There are some positive divergence, indicated on the chart below by the blue lines. There is also short term support from the black bisect.
What I don't care for is that marubozu-like candle test of the bisect. A longer tail would have been more bullish. An inside day tomorrow wouldn't surprise me. The wedge has stared at boatloads of traders for quite some time, as does its trendline break.
The question is, what will ensue: the terrifyingly delightful plunge long awaited by famished bears; a shallow pullback and delirious new highs for crazed bulls; or rewarmed left-over 2004 hash (choppy test of recent highs and lows).
Here is a chart of the ES e-mini without Globex
(click for full size):
Labels: chart-analysis
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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