The Base Completes
2022.05.17 16:07
It’s 4:15 in the morning as I compose this, and even though there are some important economic reports coming out at 5:30 a.m. as well as a Powell speech at 11 a.m. (these are all PST), I wanted to get this post out there. The bullish base of the ES has completed, because of this breakout:
ES Chart
Unless the market completely wilts and produces a failed bullish breakout, this completes a potent setup for the bulls, which sets us up for a potential rally up toward that green line, which is where the Serious resistance is (sadly, the damned thing is quite a ways off – – 4275, a full 200 ES points from here.)
ES Chart
As of this moment, the RTY has completed a similar base, although the NQ hasn’t quite done it yet, although it’s close.
Nasdaq Chart
What this will almost certainly mean for me is a retreat from a portion of my positions and an increase of cash. It also means that my decision to go long Thursday was spot-on, and my decision to take those bullish profits on Friday was spot-off.
I honestly didn’t think the entire countertrend rally would be neatly contained within two days, and this pattern completion affirms that. I’m afraid that patience is going to be, once again, be a critical commodity, as we might have a 5% rally in front of us (and that’s just on the big boring ES, to say nothing of the much friskier individual equities).
