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Trending Market Nears the Upper Bound 2/9/21

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You can see it clearly. The ES fucutures are near the upper bound of a trend going back to the beginning of January. A bunch of trendlines are clustered around 3920-25. 

Meanwhile 5 day cycle trend support is coming up on 3900 here at 5 AM NY time. I wouldn't get bearish yet. There's some likelihood that that cycle has been in a down phase since Thursday. That implies that it will accelerate up up and away later today or tomorrow. I have little doubt that they'll get this to 3920, and I suspect that they'll blast through that and head for the next target area around 3970. 

Click to engorge

tvc_bbf197180bfbcd97149afc9c3114f030.png

In the less likely even that they do turn down, there are uptrending support lines every 5-10 points down to 3860. Any of them could serve as the base for the next bounce. 

Zooming in to 30 minute bars, you can see the channels and their support lines very clearly. You can also see that this rally has been quite orderly. 

All the while this monster rally is going on, the crash or pullback warnings from the mainstream media keep getting louder and louder. This is classic, "climbing a wall of worry" action. 

Yes, the market is going to crash. Is that crash imminent? No. Not according to the way I analyze things. But things change. That's why we watch the market very carefully every day. As the great trading philosopher, Professor Lawrence Berra said, "You can observe a lot by watching. 

Get the big technical picture here. 

Mealy Mouthed Technical anal cyst Gets Punched in The Mouth

Right now, I'm writing an update on Primary Dealer conditions. Lots of great charts and circumstantial evidence that they are just shell companies now, merely acting as straw parties in behalf of the Fed. I hope to have that posted before the open today. 

To post your observations register here.

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