Dead Cat Bounce Targets

Half-term has started here and I was out with my daughter this morning so I'm running a bit late. I'm just going to show the futures charts this morning as I think they are telling the story best. These are the ES, NQ and TF bonus charts that I posted at theartofchart.net this morning.

On ES an IHS has broken up with a target in the 1870 area. That's a match with the 61.8% fib retrace target at 1871 and a possible match with a currently theoretical falling channel resistance trendline, but that wouldn't be in range until at least Sunday night without a break over the 1871 61.8% fib target and the last short term high at 1874. ES Mar 60min chart:

On NQ an IHS has broken up with a target in the 4050 area. I have decent resistance in the 4100 area. NQ Mar 60min chart:

On TF an IHS has broken up with a target in the 980 area and I have strong resistance in the 984 area. TF Mar 60min chart:

These are decent patterns and I'm expecting them to play out. Hopefully some of you caught my warning on twitter last night that we might see this rally. It is now in progress. The IHS target on SPX is at 1861 and I'd expect to see that target made at minimum. Obviously this is a counter-trend bounce so longs need to be used with caution. In my view this rally is primarily setting up the next short entries.

Stan and I did a webinar on trading triangles yesterday. If you want to see the recording of that webinar then you can find that on this page here. Everyone have a great weekend! :-)