This is always a tense time in markets – breaking an important level of resistance, a new yearly high. While all looks perfectly rosy here, and despite us expecting this nice move up and being well positioned for it, it would be wrong for us not to point out that any test of top – and especially a major test of top – is the place where failure is a very real concern.
ES – S&P 500 futures break 2005 range high.
Lets monitor this move up very carefully until or unless it becomes obvious that a new trend is developing above the range. Remembering our Technical Analysis 101 – an up trend is a series of higher swing highs and higher swing lows.
We have that now in smaller time frames, now we need to see the same in larger intraday time frames before we really can rest easy, if indeed we can ever rest easy while committing our capital to the markets.
05.03.04 10:24 #