ES discussion for Thursday 8/20/09

Futures really starting to move nicely in the aftermarket. We should get a big gap up tomorrow, and I just don't see what can hold this back from new highs for the entire bull. We'll see, it's just a scenario, but I think it is the highest odds one right now.

Wow, this might be a rockin' night. I might have to pull a T and not get much sleep :-)

yep, looks like it's a runner.

Okay, this has a pattern here for an imminent upside explosion. Let's see.

Most likely case is a stop run and quick snapback to trap both sides. Let's see.

This is my next 60-min line here. It's curious how it lines up with this pattern for an upside explosion, especially if that's a stop run and trap. This is a very key spot to watch here for clues, and see what it gives as far as price action, setups, and triggers.

And what does it say if this pattern doesn't break up, as they do in almost every case, in my experience?

also notice how it reacted at this key upsloping set ML

small bullish 4pt/flat hybrid coming up

Yes. You can also draw that set with the last anchor on that sliding // (or is it a division line?) anchor spot. There's another awesome new technique I have been developing that would apply here, so if you want to keep a copy of this chart and make a note, if we do some one-on-one at some point I'll show it to you.

Yep. I've got an ending wave count here, the 150 IB, a key GLOBEX line, GLOBEX .786, a lot of things, and it closes right there. That may mean:

a) we head down a bit from here, or much, much more likely in my opinion:

b) it gaps well over the area tomorrow and we see new bull market highs

c) none of the above

I think the odds favor b) by quite a bit. We'll see. Calls off that .886 gap retest at yesterday's open look brilliant so far.