ES Finally Strings Together 2 Green Days: More Ahead? April 21st Plan
As I wrote yesterday, from a technical analysis perspective, yesterday was the most significant day since the pullback started on March 29th. We had been pulling back, but this pullback had formed a perfect “bull flag” (declining channel). Yesterday, this pattern broke out finally and its no coincidence what followed: The strongest rally in percentage terms since the pullback began.
Notably, while it doesn’t sound like much, ES also put in a second straight green day today. For a market that went 13 days with only three green days, none of which followed through, this is significant. We have a big earnings season coming up though, and bulls have some hurdles overhead.
Today, I’ll discuss the bigger picture chart pattern forming on that daily chart, I think this pattern will dictate the next few months in ES, and will be the critical reference point for determining the next trend leg.