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Stock Market Builds Formidable Base 6/24/22

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Here at the Stool we focus on the intraday and very short term cyclical trading patterns. I confine my longer term analysis to the Technical Trader reports. But the stock market has built a formidable looking potential base pattern over the past two weeks, that could have implications for more than just the next couple of days.  

Looking at the 24 hour ES S&P 500 fuguetures this morning just before 6 AM in New York, the numbers to watch are 3832, and then 3838. Clearing those should give the market enough thrust to zoom higher all the way to 3855-60. ...

OK, I keed. That would be the first resistance level. If that's cleared then there would probably be enough ooomph to get to the trend resistance convergence around 3925 or so, if not today, then Monday or Tuesday.  

The conventional measured move target of a breakout of this still to be confirmed base would be around 4000-4010. 

Now, that assumes a breakout. What if this rally dies right here, and doesn't clear 3832? Well, then we'd look to the first sport level for a target for the first pullback. That would be around 3785 at the time New York opens for regular trading.

That would only be a start for the bears. If they don't get through that, this potential base pattern gets to drag things out for a while longer as we wait for the panicked short covering to trigger that breakout. 

Once that short covering is exhausted, bears get the ball again. 

tvc_ccbe239d0c4224f43bf5abd6e1dd0bbb.png

 

Follow how pre-determined and known liquidity flows drive stock and bond prices here . I will show you and tell you exactly how the major forces of macro liquidity move not just the bond market, but stocks as well. Liquidity analysis sets the context for technical analysis. It helps us to narrow the focus of our chart reading to the outcomes that are most likely, given the circumstances. 

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1 hour ago, fxfox said:

In which Report was that? You offer so many 😉

This morning in this thread.

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6 minutes ago, fxfox said:

Concerted CB action? 😉

So much for QE / Tightening.....eh.......BOJ is having none of that.......

Concerted and perverted ........

 

>:  Lucy Bronze with a goal for England (vs Holland)......

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5 minutes ago, MisFit Kid said:

So much for QE / Tightening.....eh.......BOJ is having none of that.......

Concerted and perverted ........

 

>:  Lucy Bronze with a goal for England (vs Holland)......

The Japanese better watch out that their JGB‘s don‘t blow up. 😂🏻

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6 minutes ago, fxfox said:

The Japanese better watch out that their JGB‘s don‘t blow up. 😂🏻

At this point, do they really care......

>: looks like the World-Wide plan......

>:: and Today must be a World-Wide "Miracle"

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