Wednesday, October 31, 2012

ES ~ Globex ~ 31 October 2012

As expected, the ES dropped to 1400ish after 1420-25ish was broken:

The futures are rallying this morning and it looks like we could hit the strong resistance area at around 1420-25. There I expect at least a small correction of this upmove.

After that I'm not sure yet what will happen. One option is a break of 1433 and a rally back to the highs at 1460. A second option is a right shoulder (August left shoulder, September/October head, October/November right shoulder) of a huge H&S with a neckline at 1400.