ES- Below is a daily ES chart. A week ago I drew the gray line we bounced off of on Friday. This line is equidistant to blue line as the light-grey line is above the blue line.
The chart also shows a couple targets at 724 and 669. However, we may see a return to 812, 826, or perhaps the ascending blue line in the 840's before getting there. In a very weak market, we may not see 800 again before falling.
As my mentor, Oscar (from LiveWithOscar.com) teaches, the DJ Transportation Average is the leader of the S&P. It has a very similar pattern compared to the S&P, but is much clearer. Below is the current daily Transportation chart. After breaking through a horizontal support level at 2909, we made an equidistant move below as the most recent move above (two thin blue lines). Will this level hold this upcoming week? Will we return to the thick blue line or perhaps one of the ellipse levels (2913 or 3238)?
Homework, Lesson