ES Turn

5 Minute Bars, 24 Hours

12/9/14

The stock market “tanked” overnight. However, the weekly and daily trends are both up. Therefore, you have to look for buys. 

ES gave a great buy signal. Price formed a Head and Shoulders bottom in the first 3 hours of trading. The Head and Shoulders are labelled. The right shoulder is extended into a “handle” formation.

The breakout happens at 12:35 around 2045. 

The distance from the head to the neckline is the target distance for the projected move above the neckline. This is shown as green arrow. Price goes right to this level around 1257. Which is very close to the previous day’s close.