ES Morning Update January 10th 2023

Nice rally up yesterday. It ran into resistance and pulled back into the close. The RSI was up close to overbought too on the 6hr chart. Today I expect the market to pullback into the 3850-3870 zone to allow the RSI to go deeper and cool off.

I don’t expect it to get oversold as we are in an uptrend right now, so I’m only looking for a higher low on it… which I’m looking for the same in the price of the ES too. After that we should turn back up but I still expect more chop as more time is needed to re-align charts into an align that will support a bigger rally.

All in all there’s nothing that supports a huge rally. It should be full of up’s and down’s that slowly grind higher into OPEX next week. If we pullback today 30-50 points I’ll exit the shorts I took on Friday that were just “wildcard” shorts in case that passport played out. It was a dud like most are, which I’m fine with as I really wasn’t expecting some false flag event to happen.

Anyway, today I’m bearish early in the day and bullish later, but nothing big. This market is just in a “dead bull (cat) bounce mode” as far as I can see.  Rallies don’t hold but there’s too much support lower to allow a huge drop. Have a blessed day.