My ES Prep for week commencing 6th Feb 2023
Market has been rallying despite potential upcoming recession. My suspicion that this is a large bull trap and there will be a large drop possibly even this week. Apple, Google and other large tech firms earnings were not great but their stocks mysteriously rallied. See their individual charts for possible gap up bull traps. Everything is poised for the rug to be pulled out for the current high greed in the market.
I have 3 possible gameplans depending on which direction they decide to to go first. I'm slightly biased towards the scenario where A and B get hit before a final rally before the long way down. However be ready for further upside pressure as the technicals would suggest a very bullish market (Which I don't believe), although it does appear to be overbought.
a.
IF we break and hold below C, look for high probability downside targets A and B.
THEN
EITHER rally to C, D, and E (More likely)
OR further downside targets of G,H,I
b.
IF we break and hold above D, look for targets E, F
THEN
EITHER further upside targets
OR once back below D play back down to G and C
c.
Play rotation between C and D
I have 3 possible gameplans depending on which direction they decide to to go first. I'm slightly biased towards the scenario where A and B get hit before a final rally before the long way down. However be ready for further upside pressure as the technicals would suggest a very bullish market (Which I don't believe), although it does appear to be overbought.
a.
IF we break and hold below C, look for high probability downside targets A and B.
THEN
EITHER rally to C, D, and E (More likely)
OR further downside targets of G,H,I
b.
IF we break and hold above D, look for targets E, F
THEN
EITHER further upside targets
OR once back below D play back down to G and C
c.
Play rotation between C and D
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