8EMA Bear Train Acceleration Phase Part 3
Today’s session
started off with the Monday night rally back to the immediate targets of 1890 and
1900. This rally also fulfilled the targets from Friday’s hourly extreme oversold
“A+ Tier” setup.
At around 8:30AM,
price was trading at 1900~ vs. the daily 8EMA resistance which meant we had
another high probability short as it is an accelerated 8EMA bear train until
price proves otherwise. At the same time our hourly extreme overbought signal was
confirmed and produced an initial target back to the 1885 support level with a
possible extension to 1873. Long story short, the day was just a standard 15m
8EMA/20EMA bear train that gave everyone simple risk vs. reward short entries.
Near the end of the
day session, another hourly extreme oversold “A+ Tier” signal confirmed itself
at 3PM when ES traded over 1861. This signal gave us deadcat bounce targets
back to 1895 and 1905 with an invalidation level below 1850. A few minutes
later, the market bounced to a high of 1882.25 before topping. In hindsight, we
now know this was a very cruel EOD bounce to suck in more buyers as the
overnight session is trading at 1845 which is below last week’s low. Also, the
hourly extreme oversold “A+ Tier” finally failed after a few consecutive wins.
What’s next?
Daily closed at 1872 and it’s another top wick rejection off
the daily 8EMA. The hourly 100% measure move for the overnight bearish
breakdown continuation targets 1834 and 1805. Remember, a key level for
tomorrow’s day session will be the 1831 Aug 2015 low if bears are able to
continue their overnight assault into the day session.
Major levels to note
in case of a capitulation/mini crash: 1831, 1813, 1800, 1780-1775 and 1750.
Nothing has changed in the daily context:
Remember the Wednesday report: Overall, any bounce is just another short opportunity for us as long as
this remains an accelerated 8EMA bear train. It is what it is, keep it simple.
Current Plan for
tomorrow:
Ride the bear train until price proves otherwise just like
the past two weeks. If a sticksave happens and the market goes back to 1878,
then we might ride the feedback loop train up as well with scalps.
