Hello Everyone,
Yesterday both the SPX/QQQ displayed dragonfly doji candles (off rising trendline from October) which were followed by further upside moves (trigger taking out yesterday's highs) as both indices revert back up to test their respective 9 day EMAs. This was supported by a VIX buy signal which was confirmed today after forming a divergent high on the daily RSI 5 and 2 hour chart. I posted a rising wedge break on the VIX 15 in the trading community. Also assisting today was a bullish Harami Candle in TLT and US Dollar weakness. For now the bulls have the ball but remain watchful with plenty of resistance overhead. One option is that this is a 4th wave bounce that will taper out and lead to a retest/break of the lows so bulls need to impulse up direct to negate. Level to level in the days ahead.
ES support below 4335 and 4322 with resistance at 4365/75
Please take a moment to look at the trade ideas.
