Tuesday, July 12, 2011
S&P (ES) Retracing 7/12
To the left is the hourly chart of the S&P futures and below is the weekly chart. In the hourly we can see that we broke the key level of 1300 overnight only to spring back. It looks like we are in the middle of a retracement that might be stalling out here as we hit the first level. There has been a healthy pullback in the MACD histogram as well and while there is no real indication this level will hold, I think that we will see this head lower in the next day or so. The second chart is more of an update on a post earlier about a potential head and shoulders setup for ES on the weekly chart. Last week finished well for this setup and this week has started out with a bang as yesterday saw quite the sell off. I think more and more we are confirming this setup and the next test will be at the neckline around 1255 level.