Thursday’s trade kicked up the pace to the upside which was in line with yesterday’s update. The ES initially was being held above the hourly 200 MA with the hourly 50 MA giving its seal of approval for the rally to continue by crossing above the 200 MA. It was a solid profitable day.
The did get back above 4000 and laid claim to 4025, 2050 and resistance at 4074. Even though I stretched my rules during the first hour the day was nicely profitable. For tomorrow, it is an options expiration, and the markets are closed on Monday.
Today’s trade saw a strong absence of sellers for 3 hours from 9 AM – 12 PM. Tomorrow could bring much of the same in which case another 50point rally puts the ES within spitting distance of 4100 and 4120. The absence of sellers does not mean capitulation has taken place. It is more logical the sellers want higher prices and when levels are reached that are trigger points it will most likely coincide with the end of the Minor wave 4 correction and the start of Minor wave 5 down.