ER2 charts

[humble1]

daily chart shows an ascending triangle breakout that ran right into the wedge trendline, the wedge is the primary pattern in play because it is confirmed according to the 3% rule. The rally that started in the beginning of March is a snap back play for the wedge until proven different. for the market to maintain it's bullish bias, retracments will be fairly quiet and will hold near 50% of the last minor low of 607.4 and the high of today. To turn this bearish, I need to see a topping pattern setup on the 60 minute chart at least, none showing yet. Trading tactics = I am shorting 838 area to scalp profit taking by the bulls.

[humble1]

[humble1]

Not much to add today....ER2 appears to be headed for 824-822 area which is the upper boundry of the triangle breakout and 50% retrace and price support, should bounce from there if it does hit those levels today.

[bearwatch]

I thought i almost filled the gap today but stopped dead at 827 and turned up. I'll be watching for that again. There are not many times that we see gaps get half-filled eh?

[humble1]

I thought i almost filled the gap today but stopped dead at 827 and turned up. I'll be watching for that again. There are not many times that we see gaps get half-filled eh?

it happens all the time. the gap just represents an area of interest for a potential play.

[bearwatch]

Looks like this falling wedge is in full swing now. With the gap down this morning, might be a start of it. Good eye, humble!

[bearwatch]

wow. That triangle pattern i missed drawing out had a target at 819, it hit it and reversed, was the low for today so far. Dang!

[humble1]

there are 2 patterns in play now, both look valid. This makes things more confusing especially as the price action converges into a tight range as it is doing now. When it gets like this, I just look for the most important edges of support and resistance and wait to trade there....825 and 835 are the spots for right now, that might change later. if 838.7- gets hit again, the price action will have a higher odds chance of busting out. check to see if volume confirms. the wedge will cancel out if it does....and if it holds.

[humble1]

now sitting on gap support....may bounce, and may just dribble around to make up a triangle for the Fed news release.... I would also keep an eye on the SOX index. This thing seems to want to break higher.

[humble1]

nice bounce off that gap, now 832 is acting like resistance, this will be a lower high on this chart if it rolls over here. I am playing it short.