Friday, January 29, 2010

ES H&S

Looks like the full moon brought out the wolves, the futures carved out a new low, right after midnight.

Pull up the /ESH0 5m or 30m. You may see an ascending H&S after yesterday's downtrend (strengthening the H&S success rate). Left: Thurs 18:34 @ 1075; Head: Friday 00:00 @ 1070; Right: Friday 4:25 @ 1076.50. Projection: +10 points, ascending the bullish H&S channel.

Unfortunately, over the past few days, bullish H&S patterns have broken down quite easily on the right shoulder line, and the overnighters have been getting squeezed on morning gaps up.

The swings lately have felt like I need a T-square to plot the reversal direction. :-)

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