ES Morning Update October 22nd 2021

Dancing around the top to close out the week is the theme for today. I still do not see any strong breakout and run up to 5000+ starting from here.  The market is stubborn for sure and NOT wanting to rollover, but rollover it will next week… even if just for a pullback. Mr. Bull just hasn’t looked down yet to see that he’s dancing on air, just like the coyote in the road runner cartoon.

Today is the end of the week so as I said yesterday I don’t expect much to happen.  A small pullback was expected yesterday that could be retraced back up today, but since that never happened I’ll look for it to occur today instead.

Over the weekend is the time the market loves to do it’s tricks, and trapping bulls long here and not allowing bears to short it (due to fear of a gap up over resistance for another big squeeze) is the ideal setup for a gap down Monday.

It might not happen or it might be small with a retrace to close the gap shortly after the open as we know that the market tends to start any down move slowly at first and then picks up steam near the end. But the setup will still be there this weekend… if they decide to do it? It’s not something I place a trade on of course, as the safer bet is to wait until we see it rollover first and short the bounce back up during the retrace.

I’m going to keep this update short as I’ve covered my thoughts several times this week in other posts. Today should be another nothing day with some kind of small pullback early in the day and right back up late in the day to again close with another DOJI (in-decision or spinning top) candle on the daily chart. Have a blessed day and great weekend.