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The Final Trading Day Of 2017 & The Beginning Of 2018

Let’s take a look at how the ES ended 2017 and, more important perhaps how it’s likely to open 2018.  While most of you don’t trade the ES intraday, the weekly, daily and swing charts of the S&P 500 mini have implications for how the overall market is likely to trade.

TAOST Weekly POIs & Zones

The weekly ES chart shows a classic rollover… and potential short signal.  I’m not a big fan of extraordinary circumstance [holiday] moves… The big drop on Friday could very well have been more about an absence of traders vs any real substantive move.  Further, the monster trend is still higher, so to my mind this only suggests that we watch closely.  The SUPER AGGRESSIVE [and experienced] trader might consider purchasing crash puts for a “punt,” but those lacking the experience/focusing exclusively on the trendfollowing process need not even consider that.

TAOST Daily POIs & Zones

Price bounced back a bit on Friday, but still closed heavy.  Traditionally, price runs higher into the close of the last trading session of the week/month/quarter/year, but that was not to be on this Friday (have a look at the 15m chart with TAOST POIs & Zones].  The day’s move was made all the more interesting because we put in a new all time high by 1 tick before rolling over and barely looking up the rest of the day [on pretty good volume]… Still, this market has repeatedly bucked attempts to sell it… and could very well do it again.

 

Intraday 15m Chart

The S&P Mini put in a new all time high overnight against a TAOST POI then proceeded to drop hard.  The price action was classic in that it continued to make lower highs and lower lows over the course of the day leaving little doubt about who was more aggressive [sellers] for the day.  

 

TAOST Swing POIs & Zones 

There was no clear signal on the swing chart suggesting that price would make this kind of move to the down side… However, I’ve said before and I say again, the more extended the coil [sideways action] the more explosive the move coming out of it.  

Meanwhile, back on the ranch, the drop helped price form a beautiful potential swing set up coming out of TAOST Buy Zone 2 which happens to coincide with the Swing Balance Zone… which happens to coincide with a previous support cluster from early December.  Don’t be surprised if price tries to skip higher on Tuesday… 

 

TQQQ Daily Zones

As the arrows show, the leveraged QQQ is showing a pattern very similar to the explosive pattern that completed back in October.

 

Hope it helps you get ready to start 2018 off on the right foot. 

KIS,

The Trader

P.S. If you’re ready to step it up in 2017, keep your eye on your inbox… We’re coming out with a portfolio/swing product to help you do just that.  If you’re not on the email list, click here

 

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