CORRECTION: Our Lean

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Our Lean

In this morning’s edition, the Lean didn’t copy over. Here it is now:

Yesterday’s action might have you thinking you’re supposed to buy the pullbacks, but a friend who has been trading and calling the markets very well said that on March 29th 2022, the ES made a high of 4631. For 3 weeks it traded down to 4355 and in 4 days it rallied back up to 4510 (on April 21st). However, by Friday it dropped 260 handles from Thursday’s high.

What’s his point?

Well, he’s trying to explain that it’s the “exact same pattern and prices” and all you have to do is make the chart. He says if he’s right, Friday could be a disaster. Ironically, we get Powell on Friday. If we close weak today, Friday becomes a major concern.

Our Lean: We could see some type of selloff after a higher open, but I’m looking at today as a “sell the rallies” type of day. We could also see some selling pressure around the European close.

As for levels, I’m watching 4485 on the upside, then 4493-4503. On the downside, keep an eye on the 4440-47 zone, then 4420.

Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.

Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!