Wednesday, May 26, 2010

ES ~ Fractal 26 May 2010

It's about time for a new fractal. The last fractals worked pretty well so I don't know why I haven't focused more on fractal.

I actually found two different fractals which look similar to the current situation but I'll post only one of them, the one that I think is more similar to today:

We should see a rally to 1093ish a pull back to 1080ish and then a rally to 1102-03. The most important number here is 1102-03. If we rallied just through it I'd discard this fractal.

At this 1102-03 level the ratio between many "subfractals" of the parent fractal equal the ratio of the child fractal. Additionally, there is also the trendline connecting the top of f2 and f4.

A sign whether this fractal will happen or not could be the EUR/USD. In the child fractal the EUR/USD topped at f8 and made a lower high at f10.

Many IFs and SHOULDs here.... : ) Well... let's see first whether we get a rally towards 1100 at all. ; )