The Christmas-like red-green red-green candles continue on. The /ES this evening is starting out as a little green doji, but should end the day green if the ABAB pattern continues. The short-term trend is down, but Friday’s panic sell bounced roughly around my long-term uptrend.
So far, this looks like a repeat of the mid-February correction: with heavy volume on selling until a high-volume reversal began the ramp to record highs. So, maybe an inside-candle day for Monday in the green, followed by a red candle below the long-term trend on Tuesday. That’s if the pattern repeats.
I expect Monday to end with trading touching the range from 1537-1554. Until that longterm line get’s some real disrespect or starts to show weakness, this “correction” should be considered yet another dip-buying opportunity. But don’t get too excited yet, momentum is still weak right now. The long term trend of RSI also suggests a proper correction is due (see that white line down there at 1460? Yeah…).
