ES Morning Update January 22nd 2024

Not much to cover today as I did a special weekend post on Sunday that covers everything under the sun… and then some.  That post is here…

Weekend Update – Near A MAJOR Top

Either we go up higher and sideways all week to top this Friday the 27th or next Wednesday the 31st, which is similar to the 2020 or 2022 top… or we hit the FP on the SPY of 483.07 from the Yahoo website and then drop hard all week to hit the lower FP of 445.22 by the end of the month.

That FP is just a guess as there is a lower one that looks to be around 434 maybe? It’s hard to figure out on the yahoo site as I’ve tried to track those FP’s in the past but never could make heads or tails from them because there are too many, and you don’t know when one’s are real. I talked about it in a previous post so there’s no point covering it again here.

Personally I think they are a distraction and can’t be used to trade off of.  My lean is with the 2020 or 2022 scenario, but that’s for the timing and pattern that should form over the next week or two.  Maybe it drags out longer?  If so, I’ll just be patient and let it setup.

It’s not an exact science, it’s more of a art really.  I have to monitor the technicals on different time frames to see how they overlap and align up as overbought or oversold.  Currently I’m estimating 1-2 weeks for the technicals to align up to where the pattern is similar to others in the past.  Meaning the Moving Averages, MACD’s and RSI are lined up together to a prior period where a “turn” happened from.  It will unfold in time and when the odds are good again I’ll take another stab at a short.

Have a blessed day.