Quick Trivia, what $/ES price target has been touched two dozen times in 5 years?
Answer comes right after a brief chartology interruption.
Let’s Have a look at $/ES on weekly chart from 2006-2009 and count how many times we touch a certain area (I should have initially hid the price on the chart to make it more fun).
I have even made it easier for you by placing bright green dots on it. The answer is 19 times. Ok so big deal… why does this matter? Follow me on a journey below this chart.
The last time this number was tagged or gotten close enough to was in April of 2011 at 1373.50 high which led to the correction of over 100 points (of which we have now regained 70 of them again). And so ladies and gentlemen If you checked out the comment in the previous post where I wrote that any shorts should have covered at $131 latest before the melt-up really heated up then you are either sidelined or took a small long position as not to miss the action. This leaves us to tonight’s Trivia Target answer which is (rounded) $1375 for possible resistance and last refueling station for future space explorations. Click to Enlarge as the preview looks blurry.
If that oil runs out then Houston to earth Houston to earth do you copy? we are coming down right over the Mediterranean sea. Yeah the European debt crisis is what I meant, I feel the need to explain it because I think faster than I type (who doesn’t) and don’t want readers to get confused.
So there we have it. Should be some light trading weeks coming up volume wise and the 1375 might not be out of the question if not more. I’d take off some longs near that level and let part ride.
Have a Happy 4Th of July weekend to those that celebrate it (Americans) and good night to the rest of my world readers.