Friday, December 18, 2009

ES Futures - 5 Min Chart Analysis 12/17/09


I may start doing a 5-minute chart analysis at the end of the day. It gives a better and bigger picture of what happened.

In strong down trending markets, the NYSE Advance - Decline Line typically will go below -2000 and stay there. Yesterday, it stayed above that level. As the futures was making a lower low, the A - D Line remained above its morning low. The first up 5-minute bar on the futures at the day's low led to a nice uptrend back to the resistance line, which was the overnight low. At the resistance line, hammers and down bars signaled a short-term downtrend back to the day's low. However, the A - D Line remained in an uptrend into the close, and after the close, the futures bounced back to the upside.

Charles

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